Tala’s MoneyMarch 2025 report reveals a shift in Kenyan financial behaviour amidst rising living costs. While 90% of Kenyans experienced economic challenges in the past six months and 32% reported financial stress, 46% remain optimistic about their financial futures.
Key trends include increased borrowing for essential needs, a surge in business ownership, and a decline in reliance on full-time employment.
The report reveals business ownership increased by 7 percentage points (pp) year-on-year, while full-time employment as the primary income source declined by 5 pp. This trend reflects the ongoing challenges of the rising cost of living, which has reduced the ability of those in full-time and part-time employment to pursue secondary income ventures.
Annstella Mumbi, General Manager of Tala-Kenya, emphasized that “financial empowerment is not reserved for the privileged few; it is a right that belongs to all of us.”
Boniface Kamiti, Manager – Consumer Protection at the Competition Authority of Kenya, urged digital credit providers (DCPs) to “see your role not just as providers of credit but as partners in the financial well-being of your customers,” emphasizing the importance of customer education and responsible lending.
Key findings from the report include:
Increased Borrowing: Over one-third of Kenyans have increased their borrowing due to rising living costs and income delays.
Borrowing Purposes: Top reasons for borrowing are business expenses, education, and daily living needs.
Lender Loyalty: 52% of Kenyans prefer sticking with a single lender (DCPs or banks). Financial Goals: Top financial goals for the next five years are business and home ownership.
Investment Habits: A significant number of respondents invest 11-20% of their income, primarily in savings, SACCOs, and chamas, driven by wealth growth, business expansion, and retirement planning.
Investment Challenges: Fear of loss and lack of trust in investment platforms are barriers to increased savings and investment.
Retirement Planning: 58% of Kenyans aim to retire in their 50s, with 76% having a retirement savings plan. Barriers to retirement savings include high expenses, lack of income, uncertainty, limited financial knowledge, and lack of access to pension plans.
Digital Investment: 57% have used digital investment platforms, with more willing to do so if security and accessibility are assured.
Financial Stress: 12% of Kenyans are always stressed about their financial situation, and 20% are often stressed. 45% are occasionally stressed.
Financial Sentiment: 46% of Kenyans are optimistic about their financial future, while 3% are pessimistic.
The MoneyMarch 2025 report is the fifth installment of Tala’s annual campaign, which aims to empower Kenyans with financial education, tools, and resources.