Report: Kenyans are living one day a time

Most Kenyans are leaving one day at a time, saving money to pay bills and deal with emergencies.

Even where they are saving for education, it is because they believe it is their ticket out of poverty.

No wonder, poorer people (29 per cent) than the rich (20 per cent) consider education as their most important future goal.

Otherwise, nine out of every 10 Kenyans are putting aside some money for their day-to-day needs and emergencies such as burial and medicine.

In contrast, in 2016, only five out of ten people said they saved for day-to-day needs and emergencies, pointing to a steep rise in the cost of living.

Only two out of 10 saved to expand a business, improve or buy a house and buy land.

Very few Kenyans were borrowing and saving for an asset, such as buying land, building a home or expanding their business.

Over 80 per cent of the respondents cited economic reasons for not saving, with the majority of them (42.3 per cent) saying lack of regular income was their impediment to saving.

Another 38.3 per cent said they do not have money to save, burdened by spending pressures.

“The gap between savings and credit has narrowed in the period 2016-2019. Credit uptake has been rising steadily while the savings rate remains gradual,” read the report.