Debt and Sports Betting Threaten Kenyans’ Financial Progress – Report

Financial protection remains a challenge, with 79% of youth-owned businesses uninsured and only 26% actively saving for retirement.

Cost pressures remain significant, with 43% of respondents having borrowed money to meet everyday expenses, while 38% report occasionally exceeding their monthly budgets.

Sports betting is also emerging as a financial risk. About 23% of youths participate in sports betting, with 55% of those who bet saying they do so in an attempt to earn extra money, while 40% report experiencing financial difficulties as a result.

Young working Kenyans are showing strong signs of financial recovery, driven by improving earnings, income diversification, entrepreneurship and a strong commitment to saving, according to the Old Mutual Financial Wellness Monitor 2025 report.

The report, released ahead of International Youth Day, shows that young people aged 20–29 are the most optimistic age group surveyed, with 83% expressing a positive financial outlook.

Financial Satisfaction

Financial satisfaction among the group increased from 34% in 2024 to 45% in 2025, while 42% reported earning more than they did a year earlier.

The findings also reveal a generation adapting to financial pressure by broadening how it earns, saves and manages money.

However, significant gaps remain in emergency savings, business insurance, retirement planning and debt management.

“Young Kenyans are increasingly building their financial lives around more than one source of income. 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 Annie Nibishaka, Old Mutual Group Group Head of Marketing and Communications.

Income

Income diversification is emerging as an important contributor to financial resilience among young working Kenyans.

Nearly a quarter (24%) earn income from multiple sources, while 39% own or part-own a business.

Beyond employment and business income, 27% of young people also report receiving financial support from family, friends and local or international networks, highlighting the continued role of social support systems in household financial resilience.

Saving remains a priority among young people, with 97% reporting that they have a savings goal.

Their leading priorities include starting a business (29%), investing in an existing business (23%), funding their children’s education (21%), buying a home (20%), and building an emergency fund (19%).

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Financial Resilience

However, the findings reveal a gap between saving intentions and overall financial resilience.

Only 36% say their savings could sustain them for more than three months if they lost their income.

Long-term financial preparedness also remains limited. Only 26% are actively saving for retirement, with the main barriers including feeling too young to start (35%), insufficient funds (30%), and retirement not being an immediate priority (30%).

Consequently, 79% lack confidence that their retirement savings will ultimately be adequate.

The protection gap is also evident among young entrepreneurs. Despite the high level of business ownership, 79% of businesses owned by young respondents are uninsured.

Despite improving financial confidence, many young people continue to face pressure from debt and the cost of everyday living.

Loans

More than four in ten (43%) have borrowed to meet everyday expenses, while 26% have taken loans to purchase stock or fund business activities.

Mobile money loans remain the most common source of credit at 39%.
Sports betting is emerging as a notable financial behaviour.

Nearly a quarter (23%) of young respondents participate in sports betting, with participation significantly higher among young men.

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Economic motivations are a major driver, with 55% of those who bet saying they do so in an attempt to make extra money.

However, the findings also highlight the financial risks involved, with 40% of young gamblers reporting that they have experienced financial difficulties as a result of gambling.

The findings point to a strong demand for practical financial education. 78% of young working Kenyans say it is important for financial institutions to provide financial information and tools that can help them improve their financial knowledge.

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