More salaried Kenyans replacing career ambitions with side hustles – Report

More salaried Kenyans are turning to side hustles as economic pressures and rising debts push them to seek supplemental income, according to a new consumer survey, with nearly three–quarters choosing to cut back on non-essentials.

As households grapple with a swath of bill increases and tax hikes - a host of which came into effect last year - the MoneyMarch 2025 survey by financial technology (fintech) company Tala also found that half of consumers who took part in the poll are increasingly taking up loans more than they did last year to fund their second streams of income.

What’s more, respondents – about a third of them, say they have been borrowing more money since the beginning of the year, mostly in order to cover normal expenses like education (school fees), and daily expenditure on chows in an attempt to manage the rising cost of living.

“Full-time employment is declining, while business ownership is on the rise. However, fewer workers are engaging in side hustles, signaling financial constraints in diversifying income streams,” the report reads in part.

It noted that 92% of consumers said rising costs affected their household budgets.

Indeed, available data shows that Kenyans are progressively relying on digital lending institutions like Jijenge Credit, Safaricom’s overdraft facility, Fuliza among other apps and informal borrowing networks for liquidity, with digital lending options accounting for nearly 60 percent of loans disbursed to adults.

This, economists say, is an indication of a dire cash circulation delinquent in a rickety economy.

Peter Macharia, the CEO of digital lender Jijenge Credit, while reacting to the report, notes that the side hustle boom is happening across every age group, income level and industry in the country.

“And it is unlikely to slow down, especially among the younger generations who are comfortable juggling multiple income streams thanks in part to a thriving creative industry,” said Macharia, who is also the Chairman of the Digital Credit Providers Association Kenya.

According to an ‘Economic Outlook 2025 report by the Mastercard Economics Institute, consumer spending in the country will rise by 4 percent while consumer price inflation is likely to stabilize at 4.8 percent, offering much-needed relief to households and businesses.

This moderation creates opportunities for sustained consumer spending, particularly in essential sectors such as food, healthcare, and education.

The report’s drafters, taken between January and February, say they explored how consumers earn, spend, save, borrow, and invest amid rising living costs and shifting financial behaviors.

And further adding that, the aforesaid key insights were established to help financial institutions, policymakers, and businesses support consumer resilience.