Black Tax Is Draining Young Kenyans’ Savings, Experts Reveal What to Do

For many young people, getting their first job and earning a regular income can come with a new responsibility, which includes supporting family members back home.

This means that what may begin as occasional help with school fees, medical expenses, or household needs can gradually become an expectation to contribute whenever a financial need arises.

However, while supporting parents and relatives is often viewed as part of family responsibility, the financial pressure can become difficult for young people who are also trying to save, invest and achieve their financial independence.

Speaking to Hivileo, economist and analyst Samson Maluki and psychologist Isaac Maweu offered different perspectives on how young people can navigate family financial expectations while protecting their own financial stability.

When Helping Family Affects Your Financial Goals

According to Samson, one of the biggest challenges with Black Tax is that financial family support is often not included in a person’s initial budget.

He explained that unexpected requests can force young people to cut back on their planned expenses, savings or emergency funds in order to meet family needs.

‘Firstly, it comes from the budget. It’s never planned. They bring you emergencies, and you need to reduce your budget, cut back on expenses, or use your emergency funds to accommodate them. That’s wrong if you want to achieve your financial goals,” said Samson.

The economist noted that while helping family members may be necessary in some circumstances, repeatedly using money set aside for personal financial goals can make it difficult for young people to build financial stability.

Samson advised young people to consider the difference between helping their relatives and taking responsibility for every financial problem within the family.

“Don’t take everything they tell you to do. There’s a big difference between helping them and destroying your financial life. So, you need to be very careful,” the economist said.

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How Much Should You Give Your Family to Avoid Black Tax?

Samson explained that there is no fixed amount that every young person should contribute to their family.

Instead, he said the amount should depend on the circumstances, the nature of the need and what the individual can realistically afford.

He particularly advised young people to distinguish between emergencies and regular financial demands.

“For emergency expenses, they can only give money for those expenses,” Maluki said.

He added that financial support should not automatically become a continuous solution to a problem that requires a more permanent intervention.

The economist also urged young people to assess the circumstances behind requests for money rather than accepting every explanation without question.

Maluki further advised young people to set limits on their financial responsibilities and prioritise the relatives and needs they can realistically support.

Photo showing a mother begging son for support . Photo/ File

Why Young People May Feel Obligated to Support Family

From a psychological perspective, Maweu said the desire to financially support parents is partly connected to gratitude for the sacrifices they made while raising their children.

“It’s normal for all human beings to appreciate someone who has helped them. So it’s a normal gesture to appreciate the support we’ve received,” Maweu said.

However, he noted that the situation can become more complicated when financial support is requested rather than voluntarily offered.

According to the psychologist, young people may find themselves struggling to balance their desire to help with their own financial limitations.

Maweu explained that while a young person cannot determine how much their parents or relatives will ask for, they can decide how much they are able to contribute.

He referred to this as the “control cycle”, where individuals focus their energy on aspects of a situation that are within their control.

“You can control how much I can give, because that’s within your power. But it’s not within your power how much someone asks for,” he said.

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How to Communicate Financial Boundaries With Family

Maweu further said communication between young people and their parents is particularly important when financial expectations differ.

He argued that young people should be able to explain what they can currently afford rather than silently struggling to meet demands that exceed their income.

The psychologist said that communication with parents can be different from communication with friends or colleagues, making it important for young people to develop ways of discussing financial limitations respectfully.

Maweu also pointed to the changing financial realities faced by younger generations, noting that those who begin earning may already have to account for taxes, savings, rent, daily expenses and other financial obligations before determining how much they can send home.

At the same time, parents may have their own expectations about the level of support their adult children should provide.

Therefore, the psychologist said addressing these differences requires open communication rather than allowing financial expectations to remain unspoken.

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Photo showing family begging for support . Photo /File