Kenyans are becoming increasingly comfortable borrowing money they have not earned, while saving money they already have remains a struggle.
Kenyans are becoming increasingly comfortable borrowing money they have not earned, while saving money they already have remains a struggle.
Easy access to mobile loans, credit cards and other forms of consumer credit has made it possible to live beyond one’s means. The consequences are showing up in household balance sheets.
By December 2024, personal and household non-performing bank loans stood at Sh100.98 billion. Overall gross non-performing loans had climbed to Sh697.3 billion.
The 2024 FinAccess survey paints an equally telling picture. The proportion of Kenyans using credit or loans rose to 64 per cent in 2024, from 60.8 per cent in 2021. Over the same period, the proportion of savers fell from 74 per cent to 68.1 per cent. Yet only 42.1 per cent of respondents were classified as highly financially literate.
This gap needs urgent attention.
Financial literacy should be introduced as a non-examinable subject from primary school through university. Children should learn early about budgeting, saving, interest, debt, investment, insurance, pensions, taxation and financial fraud.
The lesson should not be about passing an examination. It should be about acquiring a lifelong skill.
Kenya cannot build a financially secure population if its people are taught how to earn money but not how to manage it.
Teach our children to make money work for them — not spend tomorrow’s income today.
