Three in 10 working Kenyans are earning more than last year, largely through side jobs and businesses, but gains are eroded by the rising dependency ratio.
This is revealed in the latest Financial Wellness Monitor by Old Mutual Group that sampled employees aged 20-59 between October and December last year.
According to the report, 26 per cent are juggling multiple jobs or doing part-time jobs (Poly-Jobbers), which is an increase from the 20 per cent reported in 2024.
At least a quarter of Poly-Jobbers are earning more from side gigs than from their formal jobs.
Kenya’s gig economy market size is estimated at $1.02 billion or Sh130 billion, with just about 1.55 million gig workers.
E-commerce and ride-hailing drive the gig economy, accounting for 42 and 20 per cent respectively.
However, this progress is unfolding amid persistent financial strain, with rising living costs, mounting debt, and expanding financial responsibilities.
The study found that 46 per cent of working Kenyans are part of the sandwich generation, supporting children as well as adults. The financially supported adults mostly include parents (79%) and siblings (49%).
Adult dependents have increased by four percentage points in 2025.
Apart from taking on more jobs and engaging in businesses to drive up revenue, working Kenyans are borrowing more to meet their daily expences including black tax.
The monitor shows that 40 per cent of Kenyans are borrowing to meet everyday expenses, with 54 per cent carrying the same or higher debt than last year, and 46 per cent regularly overspending their budgets.
“The report paints a picture of a nation in transition. Kenyans are resilient and entrepreneurial. But without stronger support in financial literacy, savings discipline, retirement planning, and protection, this progress risks remaining short-term,” Vuyokazi Mabude, head of Knowledge and Insights at Old Mutual, said.
She adds that there is a shift from passive financial behaviour to active financial intent.
Her views are supported by Tabitha Njuguna, Strathmore University Business School, Faculty Member, who insists that Kenyans are working harder and setting goals, but they need the right tools, advice, and protection to translate this resilience into long-term financial security
Those reporting financial dissatisfaction cited the high cost of living, incomes insufficient to meet expenses, difficulty in securing better-paying opportunities, and limited capital to expand their businesses.
The study found that those who had fallen behind on rent increased from 17 to 25 per cent, while those who dipped into savings to make ends meet increased from 35 to 40 per cent.
In addition, those who fell behind in house bills increased from 27 to 28 per cent.
“Working Kenyans are actively adjusting to rising costs, trading down to more affordable housing, switching to lower-cost brands, and revising mobile plans to manage expenses,’’ Vuku, an investment analyst at Old Mutual Investment Group, said.
She adds that in some cases, households are also moving children to less expensive schools, reflecting the extent to which cost pressures are reshaping everyday financial decisions
The Monitor found that 40 per cent of the population has taken out a loan for day-to-day expenses, with mobile loans continuing to be the most widely used form of credit, followed by personal loans from Chamas.
Over half (53 per cent) of consumers have enough savings to last them for three months or more, and this has increased by nine percentage points since 2024.
However, this means that four in 10 are vulnerable to running out of funds in less than three months, without an income.
On a positive note, the survey shows that employed Kenyans are demonstrating notable resilience and adaptability in the face of economic pressure, with more individuals creating additional income streams, expanding businesses, and expressing optimism about their financial prospects.
It reveals that financial satisfaction rose from 5.2 out of 10 in 2024 to 5.9 in 2025, with 70 per cent of respondents expecting their financial situation to improve over the next six months on account of improved macro-environment.
The Old Mutual Financial Wellness Monitor offers detailed insight into behaviour and sentiment, from day-to-day money decisions and risk management to the pursuit of long-term financial goals, as individuals navigate their path towards financial well-being.
This optimism is further supported by broader behavioral shifts, with 91 per cent of Kenyans now reporting that they have a savings goal.
Key drivers of financial well-being include a sense of comfort with one’s financial position, prudent debt management, the ability to save, and improved business performance relative to the previous year.
“Kenyans are not waiting for the economy to improve. In the face of economic pressure, they are actively engineering their own recovery, adapting, innovating, and finding new ways to improve their financial position,” said Arthur Oginga, CEO, Old Mutual Group.
The report also notes a downward trend in financial stress levels, with 43 per cent of employees experiencing overwhelming stress, down from 45 per cent in 2024 and 48 per cent in 2023.
