A new survey on financial wellness reveals a sobering picture of the credit landscape in Kenya, where the primary driver for taking loans has become the struggle to meet daily living requirements.
According to the data, 40% of respondents reported borrowing money simply to cover everyday expenses and make ends meet. This survival-based borrowing far outpaces investment-oriented credit, with only 25% of Kenyans taking loans to purchase stock or equipment for business purposes.
Education remains a significant financial burden, as 19% of borrowers sought credit to pay for university or school fees.
The cycle of debt is also evident, with 12% of respondents taking new loans specifically to pay off existing ones. Smaller segments of the population used credit for asset acquisition, such as furniture or appliances and land or property, each accounting for 6%.
Interestingly, 7% of respondents took loans to lend money to others, while 4% borrowed for technology items like cell phones.
Luxury and emergency spending remained at the bottom of the list, with less than 2% of borrowers seeking funds for vehicles, travel, special celebrations, or medical expenses, suggesting that in 2025, credit is being used as a critical lifeline rather than a tool for lifestyle enhancement.
Comments 0
Sign in to join the conversation
Sign In Create AccountNo comments yet. Be the first to share your thoughts!