11 per cent of Kenyans earning a monthly salary of between Ksh10,000 and Ksh20,000 were among those who purchased a home in 2023, a new survey has revealed.
The Financial Services Monitor 2024 report by Old Mutual shows that more Kenyans opted to purchase a home depending on their salary scales.
26 per cent of the respondents who purchased homes earned between Ksh20,000 and Ksh50,000. Those earning more than Ksh50,000 accounted for the largest share in the survey.
The report also noted that more males (27 per cent) own a home compared to females at 17 per cent while those in the formal sector (27 per cent) purchased more homes than Kenyans in the informal sector (20 per cent).
The idea of owning a home was ranked among the top five reasons why Kenyans saved in the past year.
According to the report, the most cited reason was the need to pay children's education (40 per cent), followed by starting businesses (30 per cent), emergency expenses (26 per cent) and the desire to own property (20 per cent).
6 Ways of Adapting to High Cost of Living
Due to the tough economy in 2023, Kenyans had to adapt their lifestyles by switching to affordable options to make ends meet.
The report cited that 35 per cent switched to cheaper retail brands while 31 per cent opted for different service providers for cheaper data options.
29 per cent opted for cost-cutting measures by moving to cheaper rented property whereas 22 per cent paused contributions to investments in bonds, mutual funds, stocks, and fixed deposits among others.
Per the report, 19 per cent delayed major expenditure to prioritise essential needs while another 19 per cent opted for cheaper TV streaming options.
Retirement Savings
While 81 per cent acknowledged that saving for retirement is key, only 26 per cent are actively doing so.
This includes; pension (59 per cent), SACCOs (20 per cent), retirement policy (18 per cent) and bank savings account (13 per cent).
74 per cent of Kenyans not involved in active savings believe that their children may support them when they are old.
