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The lack of money to save has been cited as key hindrance to growing the savings culture among Kenyans.
Players in the financial sector say that despite data showing that a majority of Kenyans are saving now compared to pre Covid-19 period the same is yet to reflect in the sectors performance.
According to a 2021 report by EFG Hermes, Kenya’s savings rate was at 13 percent, which is way below Africa’s average of 17 percent.
In an effort to change this the stakeholders in the financial services sector have launched a public awareness campaign aimed at fostering a savings culture in the economy as part of efforts to address the pressing need for improved financial literacy among the youth and the general public.
With an estimated 38 percent of the Kenyan population being financially illiterate, the campaign aims to facilitate behavior and attitude change toward financial literacy and credit.
Central Bank of Kenya Governor Dr. Patrick Njoroge, says there is need for collaborative efforts of the financial industry stakeholders in driving financial literacy initiatives
”Much more has to be done. Gaps in the usage of financial services throughout socioeconomic boundaries need to be addressed,” said Njoroge.
Through the initiative dubbed ‘’Kaa Chonjo!’’ (Be Alert!), the partners will circulate financial literacy messages focusing on savings, banking, pension and insurance.
According to the CBK boss Kenya’s financial ecosystem has transformed in the last decade from the traditional brick and mortar to an elaborate any time anywhere ecosystem prompting need to sensitise on financial literacy.
The Campaign will engage the youth, who constitute about 75 percent of Kenyans.
FSD Kenya chief executive Tamara Cook noted that there has been a major shift in Kenyans saving trends with Kenyans shunning banks for informal savings schemes such as chama.
” We believe that by fostering financial literacy, we are empowering individuals to secure their financial future and contribute to the overall economic well-being of the country,” said KBA CEO Dr. Habil Olaka BY THE STAR