Young Kenyans Show Strong Financial Recovery as Income Diversification and Saving Gain Momentum
By Jeff Kizzilah Digital Editor
Young working Kenyans are showing strong signs of financial recovery, driven by improving earnings, entrepreneurship, diversified income streams and a growing commitment to saving, according to the Old Mutual Financial Wellness Monitor 2025.
Released ahead of International Youth Day, the report identifies Kenyans aged 20–29 as the most optimistic age group surveyed, with 83% expressing a positive financial outlook.
Financial satisfaction among young people also rose significantly, from 34% in 2024 to 45% in 2025, while 42% reported earning more than they did a year earlier.
The findings point to a generation increasingly adapting to economic pressures by finding multiple ways to earn, save and manage money. However, the report warns that gaps in emergency savings, insurance, retirement planning and debt management continue to threaten long-term financial security.
“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. However, 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,” said Annie Nibishaka, Old Mutual Group Head of Marketing and Communications.
Multiple income streams drive resilience
Income diversification is emerging as a major contributor to financial resilience among young working Kenyans.
Nearly 24% earn income from multiple sources, while 39% own or part-own a business.
A further 27% receive financial support from family, friends and local or international networks, highlighting the continued importance of social support systems in helping young people navigate financial pressures.
Saving remains a priority
Despite financial challenges, saving remains firmly on the agenda, with 97% of young respondents reporting that they have a savings goal.
Their leading financial goals include:
- Starting a business — 29%
- Investing in an existing business — 23%
- Funding children’s education — 21%
- Buying a home — 20%
- Building an emergency fund — 19%
However, a significant resilience gap remains. Only 36% said their savings could support them for more than three months if they lost their income.
Retirement planning remains a concern
Long-term financial preparedness is also limited, with only 26% actively saving for retirement.
Among those not saving, 35% said they felt too young to start, while 30% cited insufficient funds and another 30% said retirement was not an immediate priority.
As a result, 79% lack confidence that their retirement savings will ultimately be adequate.
Young entrepreneurs also face a major protection gap. Despite high levels of business ownership, 79% of businesses owned by young respondents are uninsured, leaving many vulnerable to unexpected losses.
Debt and gambling add pressure
The report also highlights continued pressure from the cost of living and debt.
More than four in ten young respondents, 43%, have borrowed money to meet everyday expenses, while 26% have taken loans to purchase stock or finance business activities.
Mobile money loans remain the most common source of credit, accounting for 39%.
Sports betting is another notable financial behaviour, with 23% of young respondents participating in sports betting, particularly among young men.
Economic motivations appear to be a major factor, with 55% of young bettors saying they participate in an attempt to make extra money. However, 40% of young gamblers reported experiencing financial difficulties as a result of gambling.
Strong demand for financial education
The report points to significant demand for practical financial education, with 78% of young working Kenyans saying it is important for financial institutions to provide information and tools that can improve their financial knowledge.
The findings suggest that while Kenya’s young workforce is becoming more entrepreneurial, financially optimistic and adaptable, sustainable financial security will require stronger emergency funds, insurance protection, retirement planning, responsible borrowing and improved financial literacy.
The message is clear: young Kenyans are finding new ways to earn—but turning that resilience into lasting wealth will require better financial protection and long-term planning.
