A recent report has indicated a 7% rise in business ownership in Kenya for 2025, while full-time employment as the main source of income has seen a 5% decline year-on-year.
The Tala Money March 2025 report reveals that both full-time and part-time workers are participating in fewer income-generating activities, as escalating living expenses restrict the funds available for side ventures.
The report also highlights the ongoing effects of the high cost of living. Compared to 2023 and 2024, financial strain continues to be a significant issue, with 90% of Kenyans surveyed reporting economic difficulties in the last six months.
Moreover, 32% of respondents acknowledged feeling stressed about their financial circumstances.
In spite of these economic challenges, there is a strong sense of optimism regarding personal financial health. Almost 46% of those surveyed expressed confidence in their financial future, reflecting the resilience of the Kenyan people.
At the report’s launch event, Tala-Kenya General Manager Annstella Mumbi stressed the importance of financial inclusion, asserting, “Financial empowerment is not just for the privileged; it is a right for everyone. Whether you are a student, entrepreneur, business owner, or seeking a new financial beginning, this campaign is for you.”
In his keynote address, Boniface Kamiti, Manager of Consumer Protection at the Competition Authority of Kenya, called on digital credit providers to see themselves as more than mere lenders.
“We urge all digital credit providers, whether present today or not, to recognize their role as partners in the financial health of their customers. By investing in customer education, we can help borrowers understand responsible credit use and pave the way for a more secure financial future,” he stated.
The report reveals that more than one-third of Kenyans have increased their borrowing, a trend driven by escalating living costs and delayed income. The main reasons for this borrowing include covering business expenses, funding education, and meeting daily needs. On a positive note, around 80% of borrowers express confidence in their ability to repay their loans.
Interestingly, 52% of Kenyans now prefer to work with a single lender, whether it be a licensed Digital Credit Provider (DCP) or a traditional bank, indicating a shift towards establishing long-term financial partnerships.
Looking to the future, aspirations for business and home ownership rank as the top financial goals for Kenyans in the next five years. Many respondents indicated they are setting aside 11–20% of their income for investments, primarily in savings, SACCOs, and chamas. The driving forces behind these investments include the desire to build wealth, expand businesses, and plan for retirement.
Nonetheless, the report also points out significant obstacles to increased investment, such as the fear of financial loss and a lack of trust in investment platforms.
