The Tala report reveals a rise in business ownership in Kenya, contrasted by a decline in full-time employment. Many Kenyans face financial challenges but remain optimistic. Increased borrowing is noted among citizens, underscoring the necessity for financial literacy and responsible borrowing practices. Business and home ownership are key financial goals for many, with Tala advocating for financial education and credit access to promote economic empowerment.
A recent report by Tala indicates a transformative shift in Kenya’s economy, characterized by an increase in business ownership and a decline in full-time employment opportunities. The MoneyMarch 2025 Report reveals that business ownership has grown by 7 percentage points, while reliance on full-time employment fell by 5 percentage points year-on-year. This trend suggests that Kenyans are adapting to changing economic conditions, albeit with challenges.
The rising cost of living has hindered many Kenyans from launching side businesses, consequently limiting alternative income sources. A significant finding from the report shows that 90% of respondents have faced financial difficulties in the past six months, with 32% experiencing pronounced financial stress. In contrast, 46% of individuals maintain an optimistic outlook regarding their financial futures, demonstrating resilience amid economic hardships.
Moreover, the financial struggles have led to an increased reliance on borrowing among Kenyans, with over one-third opting to take loans for covering business expenses, education, and daily costs. Notably, 80% of those who have borrowed reported confidence in their ability to repay their loans. The survey also highlights that 52% of respondents prefer working with a single lender, whether it be a Digital Credit Provider or a bank.
Boniface Kamiti, the Manager for Consumer Protection at the Competition Authority of Kenya, has emphasized the importance of customer education by digital lenders. He articulated that, “Digital lenders should see their role not just as providers of credit, but as partners in their customers’ financial well-being.” This statement underscores the critical need for responsible borrowing and enhanced financial literacy.
Additionally, the report identifies business and home ownership as primary financial aspirations for many Kenyans over the next five years. It notes that respondents typically allocate 11–20% of their income for investments, mainly in savings, SACCOs, and chamas. However, fears of potential losses and distrust in investment platforms persist, discouraging greater investment.
Tala’s MoneyMarch campaign, which is now in its fifth year, aims to enhance financial education and provide resources and credit access to bolster economic empowerment for Kenyans. The report emphasizes the increasing significance of entrepreneurship, financial literacy, and digital lending as integral components of Kenya’s evolving economic landscape.
The Tala report highlights a pivotal shift in Kenya’s economy, reflecting a growing trend towards business ownership amid a decline in full-time employment. Despite financial difficulties faced by many, a considerable percentage of the population remains optimistic about their future. The increased reliance on credit underscores the importance of responsible borrowing and financial education, as many Kenyans aspire to achieve business and home ownership within the next five years. These developments reveal the critical need for ongoing support and resources to foster financial empowerment and resilience in the Kenyan populace.
Original Source: www.tv47.digital
