70% of Working Kenyans Financially Dissatisfied, Report Shows

A recent report from Old Mutual reveals a troubling trend in the financial satisfaction of working Kenyans, with 70% of respondents expressing dissatisfaction with their current financial conditions.

The study highlights a significant decline in income for a large portion of the population, with 70% indicating a drop in earnings. Financial stress has considerable ramifications, affecting the mental and physical health of 40% of working Kenyans. The primary drivers of this dissatisfaction include an inability to meet basic needs, rising living costs, sluggish business performance, unstable financial situations, and difficulties in 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. 47% agree (strongly or slightly) that financial stress is badly affecting their mental health," indicates the report.

Notably, 47% of those surveyed reported that financial stress negatively impacts their mental health, compounded by the financial obligations they face from dependents. The impact of this financial strain is evident, as 70% of Kenyans find themselves without emergency savings by the end of each month. Yet, amid these challenges, a notable 60% of individuals maintain an optimistic outlook regarding their financial prospects in the coming six months.

This optimism stems from anticipated improvements in business activities, opportunities for better employment, the potential for increased savings and investments, and a commitment to practice financial discipline, alongside investments in agriculture. The Old Mutual report underscores how high living costs, substantial taxation, unemployment rates, surging food prices, and a difficult business climate collectively undermine economic confidence in Kenya.

The research focuses on employed adults aged 20 to 59, earning at least Sh12,000, representing about 63% of the population aged 15 to 64. While the findings present a challenging economic landscape, the prevailing optimism among a majority of Kenyans reflects a resilient attitude and a belief in a brighter financial future.

"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," the report says.