A new analysis released by the Financial Sector Deepening (FSD) has revealed that almost half of the Kenyan population use secret hiding places like under mattresses to save their money.
According to FSD analysis of financial access in Kenya, 49.1 per cent of Kenyans use hidden places to keep their money for safety, security and confidentiality reasons.
The report reveals that 9 per cent of savers also favour the hidden places because of ease of access in cases of emergencies like illness.
Kenyans surveyed for the report also stated that it was more convenient to hide money than take it to other saving options like banks or Saccos.
FSD also revealed that a section of Kenyans used hidden places because it was the only option available, pointing to the hurdles that some regions in the country face in terms of accessing banks.
According to FSD, Kenyans surveyed expressed confidence that it was unlikely to lose money hidden, indicating that some customers have lost faith in formal institutions like Saccos and banks.
Besides secret hiding places, other options for saving include bank accounts, chama/groups, Saccos, mobile money, mobile bank, and Micro Finance Institutions (MFIs).
The report used data collected from 2006 to 2021. However, increased access to banking has seen the number of people who hide money drop from 57.5 per cent in 2009.
Mobile money and banking have recorded a steady rise over the years due to the growing popularity of mobile wallets.
The report further revealed that more Kenyans are saving more than they were taking loans. Savers mostly keep money for emergencies, day-to-day expenses, retirement, and education.
According to the survey, lack of enough money, need for regular income, lack of understanding, and lack of interest are some of the reasons that make it hard to save.
"It’s worth noting that a key barrier to saving is a lack of income, which may explain why the youth below 25 years old have high levels of financial literacy but low levels of formal savings," read the report in part.
