The Old Mutual Group has launched the first-ever Old Mutual Financial Services Monitor (OMFSM), a pioneering study that provides comprehensive insights into the Kenyan financial landscape.
The Old Mutual Group in East Africa comprises Old Mutual Holdings PLC and its subsidiaries & Old Mutual East Africa Holdings Group Limited and its subsidiaries, which include Old Mutual Life Assurance Company (closed fund), Old Mutual Investment Group, and Faulu Microfinance Bank. The Group, which operates an integrated financial services business model, is one of the largest in East Africa and offers customers insurance, investment, banking, and savings solutions.
The OMFSM is designed to offer a holistic understanding of the broader financial behaviour of Kenyans, serving as a valuable resource for individuals, businesses, and policymakers. It aims to empower the community to make informed decisions and, in turn, foster greater financial wellbeing across the nation.
Among its key findings are that close to half of Kenyan consumers are considerably financially stressed with only 1 in 10 earning more now than they did prior to the pandemic. Additionally, the study showed that, 59% of Kenyans allocate their monthly income to living expenses, surpassing the Africa average of 51%.
The report highlights Kenyans’ top financial priorities as income security, expense reduction, and debt repayment. The study revealed a notable prevalence of debt in the country, where almost 7 in 10 consumers have a personal loan of some form, higher than that in the other markets surveyed across the continent (Ghana, Namibia, and South Africa).
Meanwhile, over 50% of Kenyans own micro businesses, and 22% are “polyjobbers,” a term that refers to those earning extra income alongside their regular jobs, showcasing a robust hustling spirit.
When it comes to retirement, currently only 26% of respondents indicated that they are actively saving for retirement (which is lowest amongst the markets surveyed), and nearly 90% of Kenyans lack confidence in having sufficient retirement savings. Instead, many rely on the hope that their children will provide support in old age, with only a small percentage expecting government assistance.
Overall, amidst a recessionary environment, Kenyan economic confidence is at 16%, lower than South Africa (27%), Namibia (24%), and on par with Ghana (17%).
“At Old Mutual, we believe that knowledge is the cornerstone of financial empowerment. The Old Mutual Financial Services Monitor will serve as a reliable annual indicator of Kenyan financial behaviour, enabling us to create customized financial wellness journeys for our customers as their needs evolve,” said Arthur Oginga, the Group CEO of Old Mutual East Africa.
“After analysing the consumer financial attitudes and behaviours of Kenyans, the necessity for comprehensive financial wellness support is evident, covering day-to-day expenses, debt and income management, and long-term savings. This is a role that Old Mutual already plays, but will ramp up to equip more families with the relevant tools to thrive.”
In Kenya, where it has served customers for over 100 years, the Old Mutual Group has the leading short-term insurance business, an investment business with over Kshs 252B in Funds Under Management, and a fast-growing Life Assurance business. It has established diverse distribution networks via brokers, an agency force, direct sales, bancassurance, and digital channels.
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In South Sudan, the Group has the most prominent short-term insurance business. In Uganda, the Group has the largest Life Assurance Business, the largest Asset Management Business with over 67% Market share, and the second-largest short-term business in the country. UAP Old Mutual also has short-term insurance businesses in Rwanda and Tanzania.
Regionally the Group has a Kshs. 20B property portfolio with iconic buildings; Equatoria Tower in South Sudan, Nakawa Business Park in Uganda, and Old Mutual Tower in Nairobi, among others.