- A new Old Mutual report indicates that 83% of working Kenyans aged between 20 and 29 are optimistic about their financial future
- However, 43% have borrowed money to cover everyday expenses, while only 26% are actively saving for retirement
- Sports betting is also posing a financial risk, with 40% of young gamblers saying it has caused them financial difficulties
Young working Kenyans are increasingly confident about their financial prospects, supported by higher earnings, entrepreneurship and multiple sources of income.
However, debt, inadequate savings, uninsured businesses and sports betting continue to expose significant gaps in their financial security.
The Old Mutual Financial Wellness Monitor 2025 report, released ahead of International Youth Day, found that 83% of working Kenyans aged between 20 and 29 have a positive financial outlook—the highest level among the age groups surveyed.
Financial satisfaction among young people increased from 34% in 2024 to 45% in 2025. At the same time, 42% said they were earning more than they had a year earlier.
How are young Kenyans diversifying their income?
According to the report, young Kenyans are responding to economic pressure by expanding the ways they earn and manage money.
Nearly one in four respondents, or 24%, earns income from multiple sources, while 39% own or jointly own a business.
Another 27% receive financial assistance from relatives, friends and local or international networks, demonstrating the continued importance of social support in strengthening household finances.
Annie Nibishaka, Old Mutual Group head of marketing and communications, said diversified income and rising entrepreneurship showed that young Kenyans were adapting to financial challenges.
“Young Kenyans are increasingly building their financial lives around more than one source of income. The growth of entrepreneurship and diversified income streams demonstrates strong adaptability,” Nibishaka said.
She nevertheless warned that financial progress must be accompanied by better protection and long-term planning.
“This progress needs to be matched by greater financial protection, emergency savings and long-term planning if it is to translate into sustainable financial security,” she added.
What are young Kenyans saving for?
Saving remains an important goal for working youth, with 97% of those surveyed reporting that they have a savings target.
Starting a business was the leading goal at 29%, followed by investing in an existing business at 23%.
Other priorities included:
- Paying for children’s education — 21%
- Buying a home — 20%
- Establishing an emergency fund — 19%
Despite these ambitions, only 36% said their savings could support them for more than three months if they lost their income.
The findings suggest that while most young workers understand the importance of saving, many remain vulnerable to job losses, business disruptions and unexpected expenses.
Why are young Kenyans not saving for retirement?
Only 26% of the respondents were actively putting money aside for retirement.
Among those not saving, 35% said they felt too young to begin, while 30% cited insufficient funds. Another 30% said retirement was not an immediate priority.
Consequently, 79% were not confident that their retirement savings would eventually be sufficient.
A similar protection gap was observed among young entrepreneurs. Although business ownership is relatively high, 79% of youth-owned businesses were uninsured.
This means that many young entrepreneurs could struggle to recover from theft, fire, accidents or other unexpected losses.
How is the cost of living affecting Kenyan youth?
The rising cost of everyday necessities continues to place pressure on young workers despite their improving confidence.
The report found that 43% had borrowed money to cover ordinary expenses, while 38% admitted that they occasionally spent more than their monthly budgets allowed.
Another 26% had taken loans to purchase stock or finance other business activities.
Mobile money loans were the most common form of credit, accounting for 39% of borrowing among the young respondents.
Is sports betting hurting young Kenyans financially?
Sports betting is also emerging as a threat to young people’s financial wellness.
Nearly one-quarter of young respondents, or 23%, said they participated in sports betting, with the practice substantially more common among men.
For many participants, betting was viewed as an income-generating activity rather than purely entertainment. Some 55% of bettors said they placed wagers in an attempt to make extra money.
However, 40% of young gamblers reported experiencing financial difficulties because of gambling.
The findings highlight the danger of relying on betting as an alternative source of income, particularly among youths already struggling with household expenses and debt.
The report also revealed strong demand for practical financial education. About 78% of young working Kenyans said financial institutions should offer information and tools to help improve their financial knowledge.
