Young Kenyans are increasingly building their financial lives around multiple income sources, but need greater financial protection and long-term planning.
Old Mutual Group Head of Marketing and Communications Annie Nibishaka says that the growth of entrepreneurship and diversified income streams demonstrates strong adaptability.
However, she said 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.
In a press release today on Old Mutual Financial Wellness Monitor 2025 as the world commemorates International Youth Day today, Nibishaka noted that young working Kenyans are showing strong signs of financial recovery, driven by improving earnings, income diversification, entrepreneurship and a strong commitment to saving.
The monitor 2025 indicates that 83 percent of Kenyans aged between 20 and 29 have a positive financial outlook, making them the most optimistic age group surveyed.
The report further shows financial satisfaction among young people rose from 34 per cent in 2024 to 45 per cent in 2025, while 42 per cent said they were earning more than they did a year earlier.
However, the findings point to significant gaps in financial resilience, particularly in emergency savings, insurance, retirement planning and debt management.
Only 36 per cent of young respondents said their savings could sustain them for more than three months if they lost their income, despite 97 per cent having a savings goal.
Starting a business was the leading savings goal at 29 per cent, followed by investing in an existing business at 23 per cent, funding children’s education at 21 per cent, buying a home at 20 per cent and building an emergency fund at 19 per cent.
The report further shows that 24 per cent of young people earn income from multiple sources, while 39 per cent own or part-own a business, reflecting growing reliance on entrepreneurship and diversified income streams.
Despite this entrepreneurial drive, 79 percent of youth-owned businesses are uninsured, exposing young entrepreneurs to financial shocks.
Retirement preparedness is also low, with only 26 per cent actively saving for retirement, while 79 per cent lack confidence that their retirement savings will be adequate.
The main barriers to retirement saving include the perception that they are too young to start saving (35 percent), insufficient funds (30 percent), and retirement not being an immediate priority (30 percent).
Debt and the rising cost of living are adding further pressure, with 43 percent reporting that they have borrowed to meet everyday expenses. Another 26 per cent have taken loans to purchase stock or finance business activities, with mobile money loans emerging as the most common source of credit at 39 per cent.
Sports betting is also emerging as a financial risk, with 23 percent of young respondents participating in betting. Of those who bet, 55 per cent said they do so in an attempt to make extra money, while 40 per cent reported experiencing financial difficulties as a result.
The report also highlights strong demand for financial education, with 78 percent of young working Kenyans saying financial institutions should provide information and tools to improve their financial knowledge.
The official theme for International Youth Day 2026, normally observed on August 12, is “Different Contexts, Common Aspirations.”
This year’s United Nations focus highlights that while young people face diverse national, local, and economic realities, their fundamental goals and dreams remain remarkably aligned globally.
By Wangari Ndirangu
