Old Mutual has launched its latest Financial Services Monitor, which offers invaluable insights into the financial behaviours and attitudes of Kenyans, with a particular focus on women.
Old Mutual Women’s Network Patron Anne Nyamu said the second edition of the Old Mutual Financial Services Monitor (OMFSM) provides a comprehensive analysis of the Kenyan economy, highlighting key trends and challenges faced by individuals, especially women.
“The report comes in the wake of International Women’s Day, which is focusing on the economic empowerment of women to accelerate gender equality,” cited Anne Nyamu.
According to the report, only 20 per cent of women are saving money for retirement, despite 80 per cent of them acknowledging its importance. Also, 16 per cent of women in Kenya express confidence in the country’s economy, with a staggering 54 per cent reporting significant financial stress, a figure notably higher than their male counterparts, standing at 41 per cent.
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The impact of the COVID-19 pandemic on earnings is also evident, with 9 out of 10 Kenyan consumers (91 per cent women; 90 per cent men) experiencing stagnant or decreased income levels.
According to the latest Old Mutual Financial Services Monitor, 60 per cent of women have had to adjust their living expenses due to financial strife.
The Monitor also sheds light on expenditure patterns, revealing that 60 per cent of household income is allocated to living expenses, 12 per cent to debt, and one-fifth to savings.
Notably, access to healthcare remains a challenge, with over half of Kenyan women lacking medical insurance and two-thirds not covered by their employer. To cope with financial pressures, 41 per cent of Kenyan women have tapped into their savings, while 30 per cent have resorted to borrowing from savings clubs (chamas).
In terms of retirement savings, while 8 in 10 women acknowledge its importance, only 2 in 10 are actively saving for retirement, highlighting a significant gap that needs to be addressed.
Despite these challenges, there remains a beacon of optimism, as almost three-quarters of Kenyan women believe their financial situation will improve in the next six months.
This optimism is accompanied by adaptive strategies, with 60 per cent of women adjusting their expenses, including cutting down on house-helps and switching to cheaper brands. Meanwhile, 36 per cent of women are actively working to secure their investments.
The entrepreneurial spirit among Kenyan women also continues to thrive, with over half owning businesses. However, most of these enterprises are small-scale, with 72 per cent being proprietor-run and 28 per cent employing five or fewer individuals.
Commenting on the report, Old Mutual East Africa Group CEO, Arthur Oginga, said: “The insights provided by this edition of the Old Mutual Financial Services Monitor emphasize the urgent need for tailored financial solutions and support mechanisms, particularly for women in Kenya. The Old Mutual Group is keen on stepping in to offer the financial services that will help this important demographic cope effectively.”
Old Mutual’s Financial Services Monitor serves as a comprehensive resource for policymakers, industry stakeholders, and individuals alike, offering invaluable insights into the dynamics shaping the Kenyan financial ecosystem.
By John Kamau
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