Kenyans tighten grip on finances amid rising cost of living - Report

Kenyans are increasingly taking control of their finances, with a growing number prioritising savings and seeking more flexible credit options as economic pressures mount.

A new report by Tala shows that 59 per cent of Kenyans are now saving through bank accounts and chamas, up from 56 per cent recorded last year, signalling a shift towards financial caution driven by uncertainty and the need to cushion against emergencies.

The findings come at a time when the cost of living continues to rise, with one in five Kenyans reporting that their expenses have increased by more than 20 per cent in the last six months.

Despite these challenges, the report points to a resilient population, with business ownership rising by eight percentage points compared to 2025. However, fewer salaried workers are engaging in side hustles, suggesting that many are struggling to stretch their incomes further.

Speaking during the release of the report, Tala Kenya General Manager Annstella Mumbi underscored the need for joint efforts in strengthening financial systems.

“From these findings, I am convinced that together we can build a financial ecosystem that supports ambition, encourages responsible borrowing, and ensures that entrepreneurs have the tools they need not only to survive today but also build a better tomorrow,” she said.

At the same time, digital lenders are increasingly becoming the go-to option during financial emergencies, with 91 per cent of consumers borrowing from digital credit providers, up from 87 per cent last year.

However, the report indicates a shift in borrowing behaviour, with Kenyans now taking loans less frequently and opting for smaller amounts.

Where loans are taken, they are largely used to meet business expenses, pay school fees and cover daily household needs.

Notably, borrowing for medical expenses has risen sharply, with 26 per cent of respondents saying they had taken a loan to settle medical bills in the past six months, up from 17 per cent previously.

During the launch, Airtel Money Managing Director Anne Kinuthia-Otieno highlighted the role of mobile money in shaping financial resilience.

“The spirit of resilience runs through every digital transaction from market traders in Gikomba to startups in Westlands. It gives us the confidence to thrive in a rapidly changing world,” she said.

“At Airtel Money, we remain committed to being a partner in this journey, ensuring that the wheels of our economy keep turning, safely and inclusively,” she added.

The report is part of Tala’s annual MoneyMarch campaign, which focuses on equipping Kenyans with financial knowledge and tools to improve their economic well-being.