Just two out of 10 Kenyans have sound financial health, despite gains in financial inclusion in recent years, a recent survey has revealed.
On Thursday December 4, the Central Bank of Kenya (CBK) released Kenya National Financial Inclusion Strategy (NFIS) for 2025–2028. This document included findings from the 2024 FinAccess Survey which painted a worrying picture of Kenyans' financial health.
The strategy defines financial health as an individual's ability to manage day-to-day needs, absorb unexpected financial shocks, and invest in long-term goals.
A Multidimensional Financial Health Index (MFHI) was used to evaluate households across three key dimensions including managing daily needs, coping with financial shocks, and investing in the future. An adult is considered financially healthy if they meet at least six out of nine indicators drawn from these dimensions.
As per the findings, despite Kenya recording a formal financial inclusion rate of 84.8 per cent, the percentage of financially healthy adults has fallen dramatically over the past eight years.
In 2016, 39.4 per cent of adults were considered financially healthy, but the number declined sharply to just 18.3 per cent in 2024.
Between 2021 and 2924, the ability to manage day-to-day needs among Kenyans improved, but their overall capacity to invest in their future declined steeply.
Further, the proportion of adults able to invest in livelihoods or long-term goals fell from 39.5 per cent in 2021 to 17.1 per cent in 2024. According to the report, this signalled deep challenges in long-term financial security and highlighted the structural weaknesses within the country's financial ecosystem.
Because of the critical decline, improving financial health has become a central pillar of the NFIS 2025-2028 under Pillar 3, which is anchored under Strengthening Consumer Protection, Market Conduct and Financial Literacy.
The strategy acknowledged that financial health was the end product of all financial inclusion initiatives and aligned with Kenya's efforts with global frameworks.
Part of the ambitious targets set to reverse the decline included the formation of a Financial Health Working Group to strengthen the Multidimensional Financial Health Index, refine measurement tools, and ensure policy decisions are closely linked to real-world outcomes.
The CBK also revealed collaborations with global partners, including the World Bank and the Bank for International Settlements (BIS) to align Kenya's financial health metrics with international standards.
