Tala’s MoneyMarch 2025 Report reveals a rise in business ownership in Kenya, with a 7% increase, while full-time employment roles drop by 5%. Economic pressures lead to more borrowing, yet 46% remain optimistic about their financial future. The report stresses the need for financial education and highlights the importance of entrepreneurship in the current economic landscape.
A recent report by Tala highlights significant changes in Kenya’s economy, where business ownership is on the rise while full-time employment is declining. The MoneyMarch 2025 Report indicates that business ownership has grown by 7 percentage points, whereas reliance on full-time jobs as the primary income source has decreased by 5 percentage points compared to the previous year.
The report points out that a growing number of Kenyans are hesitant to start side businesses due to the increasing cost of living, thus limiting their opportunities for alternative income streams. Additionally, financial stress is prevalent, as 90% of respondents reported financial difficulties in the past six months, with 32% indicating significant stress. Despite these challenges, 46% of those interviewed are optimistic about their financial future.
In light of the economic pressures, over one-third of Kenyans have increased their reliance on borrowing, primarily to finance business operations, education, and daily expenses. Rising confidence is noted among borrowers, with about 80% believing they can repay their loans. Furthermore, 52% prefer maintaining a single lender, choosing either licensed Digital Credit Providers or traditional banks.
Boniface Kamiti from the Competition Authority of Kenya emphasizes the role of digital lenders in fostering financial health. He states, “Digital lenders should see their role not just as providers of credit, but as partners in their customers’ financial well-being.”
On future financial goals, business and home ownership rank high among Kenyans. Many are saving 11-20% of their income for investment in savings accounts, SACCOs, and chamas, though concerns about potential losses deter some from investing. Tala’s MoneyMarch initiative, now in its fifth year, aims to enhance financial literacy, provide resources, and promote economic empowerment among Kenyans, thereby highlighting the significance of entrepreneurship and digital lending in the country’s changing economic landscape.
The Tala report sheds light on the shifting economic scenario in Kenya, where there is a notable rise in business ownership amidst declining full-time employment. The ongoing financial strain prompts an increase in borrowing, yet many remain optimistic about their future. Financial literacy and responsible borrowing are paramount as Kenyans navigate this evolving economic environment, underscoring the importance of accessible financial education and digital lending.
Original Source: www.tv47.digital
