Keeping Your Business in Mind

Old Mutual group unveils tool to monitor financial landscape in Kenya

By Antynet Ford

Comprehensive insights into the Kenyan financial landscape will now be easy after the launch of Old Mutual Financial Services Monitor (OMFSM) by the Old Mutual Group.

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 well-being 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 before the pandemic. Additionally, the study showed that 59 per cent of Kenyans allocate their monthly income to living expenses, surpassing the African average of 51per cent.

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 per cent of Kenyans own micro businesses, and 22 per cent 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 per cent of respondents indicated that they are actively saving for retirement (which is the lowest amongst the markets surveyed), and nearly 90 per cent 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 per cent, lower than South Africa (27 per cent), Namibia (24 per cent), and on par with Ghana (17 per cent).

“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,” Arthur Oginga, the Group CEO of Old Mutual East Africa said.

“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.”

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