Nearly half of young working Kenyans are borrowing money just to meet their daily expenses, a new report by Old Mutual has revealed, exposing deep financial strain even as the country’s youth remain unusually optimistic about their economic future.
The Old Mutual Financial Wellness Monitor 2025, released ahead of International Youth Day, found that 43 percent of Kenyans aged between 20 and 29 have borrowed to cover everyday living costs, despite being employed. The report noted that many young earners simply cannot stretch their monthly income to the end of the month, pushing them toward debt. Mobile money loans remain the most common source of credit, used by 39 percent of borrowers.
Yet the same generation is showing striking resilience. The report found young Kenyans to be the most optimistic age group surveyed, with 83 percent expressing a positive financial outlook. Financial satisfaction climbed from 34 percent in 2024 to 45 percent in 2025, while 42 percent said they earned more than they did a year earlier.
“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,” said Annie Nibishaka, Old Mutual Group Head of Marketing and Communications, adding that this progress needs stronger financial protection and long-term planning to become sustainable.
Nearly a quarter of young people earn from multiple income sources, and 39 percent own or part-own a business, though 79 percent of these youth-owned businesses remain uninsured. A further 27 percent still rely on financial support from family, friends or wider networks, alongside their own earnings.
Saving remains a widely shared ambition, with 97 percent of respondents reporting a savings goal, chiefly starting a business at 29 percent. However, only 36 percent said their savings could sustain them for more than three months without an income, and just 26 percent are actively saving for retirement.
The report also flagged sports betting as an emerging financial risk. Twenty-three percent of young Kenyans bet on sports, mostly hoping to earn extra income, but 40 percent of those who gamble said it had caused them financial difficulties.
With 78 percent of respondents saying they want more financial education from institutions, the findings point to a generation eager to build stability, but still navigating steep economic headwinds.
