Kenya’s Economic Struggles Deepen as Financial Health of Citizens Crashes

Kenya’s economy is showing signs of deep strain, with fresh data revealing a dramatic collapse in the financial well-being of citizens. In 2016, 39.4 per cent of adults were financially healthy, but this number has plunged to just 18.3 per cent in 2024, according to the latest FinAccess Survey. The findings paint a stark picture of a nation where rising costs, stagnant earnings, and weakened financial resilience are eroding household stability despite growth in financial inclusion.

1. FinAccess Survey 2024 Exposes Kenya’s Worsening Financial Health

Released on December 4 as part of the Central Bank of Kenya’s National Financial Inclusion Strategy (NFIS) 2025–2028, the 2024 FinAccess Survey warns that Kenya’s financial health crisis is intensifying. While formal financial inclusion stands at a high 84.8%, this has not translated into improved living standards or financial stability.

The survey defines financial health as the ability to manage everyday expenses, withstand unexpected shocks, and invest in long-term goals. Using the Multidimensional Financial Health Index (MFHI), adults were assessed across nine indicators—and only those meeting at least six qualified as financially healthy. The steep drop in the number of financially stable adults signals growing economic pressure on households.

2. Long-Term Financial Security Declines as Economic Pressures Rise

Although Kenyans’ ability to meet day-to-day needs slightly improved between 2021 and 2024, long-term financial security deteriorated sharply. The proportion of adults capable of investing in their livelihoods or future goals fell from 39.5% in 2021 to just 17.1% in 2024.

This dramatic decline highlights deep economic weaknesses—reduced savings, job instability, limited access to capital, and the rising cost of living. Analysts warn that unless Kenya strengthens its financial ecosystem, more households will remain locked in cycles of vulnerability despite being formally included in the financial system.

3. NFIS 2025 – 2028 Targets Financial Health Recovery Amid Economic Decline

In response to the worsening crisis, the CBK has made strengthening financial health a central pillar of the NFIS 2025 – 2028, under Pillar 3: Strengthening Consumer Protection, Market Conduct, and Financial Literacy. The strategy positions financial health as the ultimate measure of successful financial inclusion.

Key interventions include the creation of a Financial Health Working Group tasked with refining the MFHI, improving measurement tools, and ensuring that policy decisions reflect the real struggles of Kenyan households. The CBK is also partnering with global institutions such as the World Bank and the Bank for International Settlements (BIS) to align Kenya’s financial health metrics with international standards.