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Young working Kenyans are increasingly turning to borrowing, side hustles and multiple income streams to navigate the high cost of living,
However despite the challenge many remain optimistic about their financial future, a new report shows.
The Old Mutual Financial Wellness Monitor 2025 shows that 43 per cent of young Kenyans have borrowed to meet everyday expenses, highlighting the pressure facing households as incomes struggle to keep pace with spending needs.
Another 38 per cent occasionally spend more than their monthly budgets, pointing to growing difficulties in managing day-to-day finances.
The findings paint a picture of a young population that is financially ambitious but under pressure. While 83 per cent of people aged 20 to 29 have a positive outlook about their finances, many are relying on debt and additional income sources to stay afloat.
Financial satisfaction among the group rose from 34 per cent in 2024 to 45 per cent in 2025. At the same time, 42 per cent said they earned more than they did a year earlier.
The improvement in income, however, has not eliminated financial stress.
Old Mutual Group head of marketing and communications Annie Nibishaka, said young Kenyans are increasingly building their financial lives around more than one source of income to survive the tough times.
“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 Nibishaka.
Nearly a quarter of young respondents, or 24 per cent, earn money from multiple sources, while 39 per cent own or part-own a business.
For some, the additional income is a necessity rather than a choice as they try to cover rent, food, transport, school fees and other household expenses.
The reliance on credit is also evident in the report. Besides the 43 per cent borrowing for everyday expenses, 26 per cent have taken loans to buy stock or finance business activities.
Mobile money loans remain the most common source of credit, accounting for 39 per cent of borrowing among the respondents.
The pressure comes against a backdrop of rising consumer prices. Kenya’s annual inflation rate increased to 6.5 per cent in July 2026, from 6.4 per cent in June, according to the Kenya National Bureau of Statistics.
The report also highlights another financial risk among young people — sports betting.
About 23 per cent of young respondents participate in sports betting, with participation higher among men. For many, betting is not simply entertainment. 55 per cent of those who bet said they do so in an attempt to make extra money.
The financial consequences are significant, with 40 per cent of young bettors reporting that gambling had caused them financial difficulties.
Despite these pressures, saving remains an important goal.
An overwhelming 97 per cent of young respondents have a savings goal, with starting a business, investing in an existing business, paying for children’s education, buying a home and building an emergency fund among their priorities.
But the ability to withstand a financial shock remains weak.
Only 36 per cent said their savings could support them for more than three months if they lost their income.
Long-term planning is even weaker. Only 26 per cent are actively saving for retirement, while 79 per cent are not confident that their retirement savings will eventually be enough.
Young entrepreneurs also face a major protection gap. Despite the high level of business ownership, 79 per cent of businesses owned by young respondents are uninsured.
The findings suggest that financial resilience is improving, but much of it remains fragile.
Young Kenyans are finding ways to increase their earnings and save for major goals, but high living costs, easy access to credit and risky financial behaviour could undermine those gains.
There is therefore strong demand for better financial guidance. 78 per cent of young working Kenyans said financial institutions should provide information and tools to help them improve their financial knowledge.
