The Old Mutual Financial Wellness Monitor 2025 has found that young Kenyans are increasingly relying on borrowing, side hustles and multiple income streams to meet their financial needs, even as many remain hopeful about their economic future.
The report shows that 43 per cent of Kenyans aged between 20 and 29 have borrowed money to meet everyday expenses, while another 38 per cent occasionally spend beyond their monthly budgets.
The figures highlight the growing pressure on young workers who are struggling to make their incomes cover rent, food, transport, school fees and other household expenses.
Despite these challenges, young Kenyans remain among the most optimistic groups surveyed. About 83 per cent have a positive outlook about their financial future, while financial satisfaction increased from 34 per cent in 2024 to 45 per cent in 2025.
The report also found that 42 per cent of young respondents earned more than they did a year earlier, suggesting that incomes are improving for some, although the gains are being eaten up by higher expenses.
Side hustles become a financial lifeline
The findings show that employment alone is increasingly not enough for many young Kenyans. Nearly a quarter, or 24 per cent, earn money from multiple sources, while 39 per cent own or part-own a business.
Old Mutual Group head of marketing and communications Annie Nibishaka said young people were showing considerable adaptability by looking for new ways to earn money.
“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.
Borrowing is also being used to support these income-generating activities. About 26 per cent of young respondents have taken loans to buy stock or finance business activities, while mobile money loans remain the most common source of credit, accounting for 39 per cent of borrowing.
However, not all borrowing is going towards investments. For many young workers, loans have become a way of getting through the month when salaries run out before the next payday.
The report also identified sports betting as another financial risk. About 23 per cent of young respondents participate in sports betting, with 55 per cent of those who bet saying they do so in an attempt to make extra money. Four in 10 young bettors said gambling had caused them financial difficulties.
Saving remains a priority despite the pressure. About 97 per cent of young respondents have a savings goal, with starting a business, investing, paying for education, buying a home and building an emergency fund among their main targets.
However, their ability to deal with a sudden loss of income remains limited. Only 36 per cent said their savings could support them for more than three months if they lost their income.
Long-term planning is also a concern. 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 face another major challenge, with 79 per cent of businesses owned by young respondents uninsured.
The report therefore paints a mixed picture. Young Kenyans are working harder, starting businesses, taking on side hustles and setting financial goals, but many are doing so without enough protection against unexpected setbacks.
There is strong demand for better financial education, with 78 per cent of young working Kenyans saying financial institutions should provide information and tools to help them improve their financial knowledge.
For this generation, the challenge is increasingly about more than earning money. It is about finding ways to keep it, grow it and build enough financial security to survive when the next emergency or unexpected expense comes along.
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