Kenyan workers report higher incomes but lean more on credit, side hustles

Kenya’s workers are earning more and reporting better financial outlooks, but many are also borrowing to cover daily expenses, juggling multiple income streams and informal financial tools. The result is a market in which access to finance has widened, even as financial behaviour becomes more fragmented.

Data from Old Mutual’s Financial Wellness Monitor, based on a survey of 650 working Kenyans earning at least KES 12,000 ($92) per month, shows financial satisfaction has rebounded to 5.9 out of 10, matching 2023 levels after a dip in 2024. At the same time, 70% of respondents expect their finances to improve in the next six months, up from 63% a year earlier.

The improvement in sentiment coincides with modest income gains. Three in 10  respondents say they earn more than they did a year ago, with increases more common among younger and higher-income groups. 

However, income patterns remain uneven.  About 26% of workers report having multiple income streams, and a quarter of those say their side jobs generate more income than their main employment. Nearly half of respondents own or part-own a business, indicating continued reliance on self-employment alongside formal work.

Around 74% of respondents took out a loan in the past year, with the most common reason being to cover everyday expenses rather than invest or expand a business. The data also show increased borrowing from friends, family and savings groups, alongside a rise in households dipping into savings or falling behind on rent.

Formal lenders remain part of the mix. Bank financing for businesses has increased compared with the previous year, while the use of mobile loans and microfinance remains widespread. At the same time, most business owners continue to depend primarily on personal savings or internally generated funds to finance their operations.

Banked savings have increased to 51%, up from 32% in 2024, while participation in informal savings groups has also increased to 53%. Cash holdings remain common, often linked to convenience and immediate access.

Despite the improvement in outlook, financial pressure remains evident, with about 40% of respondents reporting high or overwhelming financial stress. In addition,  54% say their debt levels have either stayed the same or increased over the past year. 

Income security continues to rank as the top financial priority, cited by 71% of respondents, while nearly half say they are worried about losing their income or job.

About 23% of respondents say they participated in betting over the past year, with many citing the need to earn extra income as a key reason.

Taken together, the findings show a workforce adjusting to shifting economic conditions by combining different income sources and financial tools. 

Gains in income and sentiment are occurring alongside continued reliance on credit, informal networks, and diverse savings channels, rather than a shift towards a single, consolidated financial system.