A new report has shown that only two out of every ten Kenyan adults are financially comfortable, despite the country making progress in financial inclusion over the past few years.
The findings come from the 2024 FinAccess Survey, which was highlighted in the Kenya National Financial Inclusion Strategy (NFIS) 2025–2028 released by the Central Bank of Kenya (CBK) on Thursday, December 4.
The NFIS document explains that financial health refers to a person’s ability to meet their everyday expenses, handle sudden financial emergencies, and plan or invest for long-term goals such as education, housing, or retirement.
To measure this, experts used the Multidimensional Financial Health Index (MFHI), which assesses households through three main areas: how well they manage daily needs, how they cope with financial shocks, and how effectively they invest in their future.
For an adult to be considered financially healthy, they must meet at least six out of nine specific indicators across these areas.
Although Kenya has achieved an impressive formal financial inclusion level of 84.8 per cent, the number of financially healthy adults has dropped sharply over the last eight years.
In 2016, about 39.4 per cent of Kenyans were financially healthy, but by 2024, the figure had fallen to just 18.3 per cent — less than half of what it was.
The survey shows that while Kenyans’ ability to manage daily expenses improved between 2021 and 2024, their long-term financial stability declined significantly.
For example, the number of adults able to invest in their livelihoods or pursue long-term financial goals dropped from 39.5 per cent in 2021 to only 17.1 per cent in 2024.
This sharp decline exposes deep weaknesses in the financial system and raises concerns about the long-term economic well-being of households.
Due to these worrying trends, boosting financial health has become one of the key focus areas in the NFIS 2025–2028 under Pillar 3, which aims to strengthen consumer protection, improve market practices, and enhance financial literacy across the country.
The strategy notes that financial health is the ultimate outcome of all financial inclusion efforts and aligns Kenya’s goals with global standards.
To address the challenges, the CBK plans to set up a Financial Health Working Group. This team will improve the Multidimensional Financial Health Index, enhance measurement tools, and ensure that policies reflect the realities of Kenyan households.
The Central Bank also announced new partnerships with international institutions such as the World Bank and the Bank for International Settlements (BIS) to ensure Kenya’s financial health indicators match global benchmarks and best practices.
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