Most Kenyans really don’t know how to manage money

A new report by Deloitte has found that Kenyans do not have comprehensive knowledge to effectively manage their money and finances. The report also showed that most Kenyans are not financially resilient and lack suitable products for those willing to save and invest small sums.

A new report by global auditing firm Deloitte has found that most Kenyan adults still face challenges that limit their ability to manage present and future needs.

The report titled: Beyond Financial Inclusion revealed that most Kenyans do not have comprehensive knowledge to manage their money and finances effectively.

On financial management, the report observed that only 2.9% of Kenyans rely on formal financial institutions for advice, compared to 88.3% who rely on themselves and their friends/family. Further insight into the report showed that most Kenyans are not financially resilient and lack suitable products for those willing to save and invest small sums.

On Savings and Investments, the report showed that 54.6% of Kenyans lack enough money to save, and 18.4% lack regular income. It added that 34.9% of Kenyans state they don’t have the kind of money to invest, 29.2% have never heard of securities markets, and 14.8% don’t understand how to invest in securities.

Further insight from the report showed that digital loans in Kenya are the most common loan, behind social network and moneylender loans. According to the report, “Those with existing loans are over-indebted or struggling to pay,” the report said, adding that 45.8% missed a payment or paid late, 12.4% paid less, and 10.7% did not pay at all.

The report also touched on Banking and payments sector, noting that most mobile money transactions incur a fee that many poor find difficult to pay, even if they are willing to do so because of the convenience and speed. Referencing KNBS, the Deloitte report noted that only 13.1% of Kenyans use mobile money for day-to-day expenses, compared to 78.9% who use cash.

Source: africa.businessinsider.com

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