Nearly half of young working Kenyans are relying on loans to cover everyday expenses as rising living costs continue to strain household budgets, according to the Old Mutual Financial Wellness Monitor 2025.
The report found that 43% of Kenyans aged 20 to 29 have borrowed money to meet daily needs, while 38% occasionally spend beyond their monthly budgets.
The findings highlight the financial pressures facing young people despite their generally positive outlook. About 83% of respondents expressed optimism about their financial future, while financial satisfaction increased from 34% in 2024 to 45% in 2025.
Income levels also showed some improvement, with 42% saying they earned more than they did the previous year. However, higher earnings have not fully eased financial strain.
Old Mutual Group Head of Marketing and Communications Annie Nibishaka said young Kenyans were increasingly relying on entrepreneurship and multiple income streams to cope with economic pressures.
About 24% of young respondents earn income from more than one source, while 39% own or co-own a business. For many, these additional income streams are essential for meeting expenses such as rent, food, transport and school fees.
Borrowing is also being used to support businesses, with 26% of respondents saying they had taken loans to purchase stock or finance business activities.
Mobile lending remains the most popular source of credit, accounting for 39% of borrowing among respondents.
The financial pressure comes amid elevated consumer prices, with Kenya’s annual inflation rate rising to 6.5% in July 2026 from 6.4% in June, according to the Kenya National Bureau of Statistics.
Betting adds to financial pressure
The report also identified sports betting as another financial risk among young Kenyans.
About 23% of respondents participate in sports betting, with participation higher among men. More than half, or 55% of young bettors, said they gamble in an effort to generate additional income rather than purely for entertainment.
The practice is already having financial consequences, with 40% of young bettors reporting that gambling had contributed to financial difficulties.
Also Read: Absa Exits Kenya Insurance Underwriting With Sale of First Assurance, Absa Life Stakes
Despite the pressures, saving remains a priority for most young Kenyans. About 97% have a savings goal, with starting or expanding businesses, investing, funding children’s education, buying homes and building emergency funds among their main objectives.
However, their financial buffers remain limited. Only 36% said their savings could sustain them for more than three months if they lost their income.
Retirement planning is even weaker, with just 26% actively saving for retirement. Meanwhile, 79% are not confident that their retirement savings will be sufficient.
Young business owners also face significant insurance gaps. The report found that 79% of businesses owned by young respondents are uninsured, leaving many exposed to financial shocks.
The findings suggest that although young Kenyans are becoming more resourceful in generating income and pursuing financial goals, high living costs, reliance on credit and risky financial behaviour continue to undermine their financial resilience.
Demand for financial education is also high, with 78% of young working Kenyans saying financial institutions should provide more information and tools to improve their financial knowledge.
