Employed Kenyans are less satisfied with their financial situation than they were 2 years ago, according to a new report released on Wednesday, February 12.
The report from Old Mutual has pointed out that 7 in 10 Kenyans are less satisfied with their overall financial situation, with 70 per cent of them having experienced a decline in their incomes.
According to the report, 4 out of 10 working Kenyans are highly stressed due to their financial situation, which has, in turn, affected their mental and physical wellbeing.
The report highlighted that the leading reasons for dissatisfaction include not having enough income to cater to their basic needs, the high cost of living, low business performance, unpredictable financial situations, and difficulty saving.
"In the latest study, working Kenyans are less satisfied with their overall financial situation than they were in 2023. Less than 3 in 10 are satisfied," indicated the report.
"47% agree (strongly or slightly) that financial stress is badly affecting their mental health," it added.
Furthermore, financial dependency burdened on working Kenyans by children and other adults has also affected their financial well-being.
Old Mutual further said that 7 out of 10 Kenyans were found to have no emergency funds left at the end of the month, after expenses.
However, 6 in 10 working Kenyans remain optimistic that their financial situation will improve in the next 6 months, for reasons that include improved business operations, getting better jobs, and saving or investing more.
Other reasons include cutting down on unnecessary expenditures, developing more financial discipline, and investing in agriculture.
"63 per cent from a personal perspective, Kenyans remain optimistic, as 6 in 10 working Kenyans expect their financial situation to improve in the next 6 months," it said.
According to the report, the high cost of living, high taxes, unemployment, rising food prices, and a difficult business environment have downturned Kenya's economic confidence.
The report assessed the financial well-being of employed Kenyans, focusing on urban and peri-urban adults aged 20 to 59 and earning Ksh12,000 or more, who represent approximately 63 per cent of the country’s population aged 15 to 64.
