Kenyans are building new income streams, expanding businesses, and expressing optimism about their financial futures, even as the cost of living squeezes household budgets and debt levels remain high.
That is the central finding of the 2025 Old Mutual Financial Wellness Monitor, an annual study tracking the financial health of working Kenyans aged 20 to 59 earning KES 12,000 or more.
Financial satisfaction climbed from 5.2 out of 10 in 2024 to 5.9 in 2025, matching 2023 levels. Seven in ten respondents expect their financial situation to improve over the next six months, driven by a more favourable macro environment, better business prospects, and growing confidence in property and agricultural investments. Underpinning this optimism: 91% of respondents now hold an active savings goal.
Financial Satisfaction: Three-Year Trend
| Year | Mean Score (out of 10) |
|---|---|
| 2023 | 5.9 |
| 2024 | 5.2 |
| 2025 | 5.9 |
Active, Not Passive: A Nation Rebuilding on Its Own Terms
Working Kenyans are not waiting for conditions to improve. Thirty per cent report earning more than they did a year ago, while 47% own or co-own a business. The share of “poly-jobbers” — those juggling multiple income streams — rose from 20% in 2024 to 26% in 2025. A quarter of poly-jobbers now earn more from their side work than from their primary employment.
“Kenyans are not waiting for the economy to improve,” said Arthur Oginga, Old Mutual Group Chief Executive Officer. “In the face of economic pressure, they are actively engineering their own recovery, adapting, innovating, and finding new ways to improve their financial position.”
Income security remains the top financial priority for working Kenyans, and its importance grew by 12 percentage points in 2025.
Top Financial Priorities: 2025
| Priority | % Respondents | Change vs 2024 |
|---|---|---|
| Income / job security | 71% | +12% |
| Cutting expenses | 49% | -2% |
| Ensuring investments are safe and with a trusted provider | 46% | +2% |
| Paying off debt | 33% | +2% |
| Building a financial buffer or emergency fund | 32% | -7% |
| Getting the best return from investments | 32% | -5% |
| Helping friends and family financially | 21% | 0% |
| Checking insurance cover | 17% | -1% |
Changes in Personal Earnings
| Earnings Status | 2024 | 2025 |
|---|---|---|
| Earning more than a year ago | 22% | 30% |
| Earning about the same | 34% | 38% |
| Earning a bit less | 35% | 25% |
| Earning significantly less | 9% | 6% |
The Sandwich Generation: Squeezed from Both Sides
Financial pressure does not fall on individuals alone. Forty-six per cent of working Kenyans belong to the sandwich generation, simultaneously supporting children and adult dependents. The number of adult dependents — primarily parents (79%) and siblings (49%) — increased by four percentage points in 2025, stretching household finances further.
The consequences show up in daily behaviour. The share of Kenyans who fell behind on rent jumped from 17% to 25% in a single year. Those who dipped into savings to cover everyday expenses rose from 35% to 40%. Households are responding by switching to lower cost brands, downgrading mobile plans, relocating to more affordable housing, and in some cases moving children to less expensive schools.
“Cost pressures are reshaping everyday financial decisions in ways that extend well beyond the household budget,” said Justina Vuku, Investment Analyst at Old Mutual Investment Group.
Household Financial Strain: Key Indicators
| Indicator | 2023 | 2024 | 2025 |
|---|---|---|---|
| Borrowed from friends or family | 41% | 39% | 43% |
| Borrowed from savings group or Chama | 23% | 22% | 25% |
| Dipped into savings to make ends meet | 38% | 35% | 40% |
| Fallen behind on rent | — | 17% | 25% |
| Fallen behind on a home loan | — | 1% | 1% |
Debt: Widespread, but Better Managed
Debt remains a defining pressure point. Fifty-four per cent of respondents carry the same or more debt than a year ago, and 40% took out a loan to cover day to day living expenses. Mobile loans remain the most widely used form of credit, followed by loans from Chamas.
Yet Kenyans are managing debt with more intent. The proportion who took out consolidation loans rose by nine percentage points compared to 2024, and 22% approached creditors directly to renegotiate payment terms — a ten point increase year on year. As a result, the share of Kenyans who frequently worry about debt fell by 13 percentage points, to 40%.
Debt Position Compared to Previous Year
| Debt Status | % Respondents |
|---|---|
| Less debt than a year ago | 46% |
| About the same | 34% |
| More debt than a year ago | 19% |
Reasons for Taking Out Loans
| Reason | % Respondents |
|---|---|
| Everyday expenses / to make ends meet | 40% |
| To buy stock or equipment for business | 25% |
| Education fees | 19% |
| To pay off other debt | 12% |
| To lend money to someone else | 7% |
| Home renovations or maintenance | 6% |
| To buy furniture or appliances | 6% |
| Part payment for land or property | 6% |
| To buy a phone or technology item | 4% |
| To buy a vehicle | 2% |
| Holiday or travel | 2% |
| To start or boost a business | 2% |
| Special celebration | 2% |
| Medical expenses | 1% |
Savings Growing, But the Buffer Remains Thin
Progress on savings is real. Fifty-three per cent of consumers now hold enough savings to sustain themselves for three months or more — up nine percentage points since 2024. Banked savings rose from 32% to 51%, and Chama membership reached 53%. Children’s education, business investment, and homeownership top the list of savings goals.
Retirement planning is also gaining ground. Thirty-seven per cent of working Kenyans are actively saving for retirement, an eleven point increase since 2023. Yet 34% report having no retirement plan at all, and four in ten Kenyans remain one lost income away from running out of funds within three months.
Savings Vehicles: Formal and Informal
| Vehicle | 2023 | 2024 | 2025 |
|---|---|---|---|
| Banked savings | 35% | 32% | 51% |
| SACCO membership | 22% | 16% | 23% |
| Chama membership | 44% | 48% | 53% |
| Unbanked cash | 25% | 24% | 29% |
Top Savings Goals: 2025
| Goal | % Respondents |
|---|---|
| Children’s education | 37% |
| Money for existing business | 25% |
| Money to start a business | 23% |
| Own home | 22% |
| Saving for family’s future | 18% |
| Emergency expenses | 18% |
| Home improvement | 11% |
| Medical or health expenses | 9% |
| Comfortable retirement | 8% |
The Outlook: Intent Is There. Infrastructure Must Follow.
Overall wellbeing among working Kenyans scores 7.5 out of 10. Financial stress levels are declining — 43% reported overwhelming or high stress in 2025, down from 48% in 2023. Yet 44% say financial stress still affects their mental and physical health.
“The 2025 report paints a picture of a nation in transition,” said Vuyokazi Mabude, Head of Knowledge and Insights at Old Mutual. “Kenyans are resilient and entrepreneurial. But without stronger support in financial literacy, savings discipline, retirement planning, and protection, this progress risks remaining short term.”
The data points to a population that has moved from passive financial behaviour to active financial intent. The gap now lies between intention and outcome — and closing it will require the financial sector to move with equal urgency.
“We must shift from simply responding to loss to actively protecting progress,” said Japheth Ogalloh, Managing Director of Old Mutual General Insurance Kenya. “That means designing solutions that balance today’s financial pressures with tomorrow’s security — and making financial education and advisory services accessible to every Kenyan.”
