Generational Shift: How millennials and Gen Z are redefining Black Tax

The concept, however, is deeply rooted in historical and socio-economic contexts that go beyond just financial responsibility, it is a legacy of economic disparities, systemic exclusion, and cultural expectations.

In Kenya, the concept of Black tax, where financially stable individuals support their extended family remains a major responsibility. Rooted in historical economic disparities and cultural expectations, Black tax is often seen as both a duty and a burden.

Black tax remains a reality for many Kenyans. However, the way it is handled is changing. While Millennials tend to embrace it as a lifelong duty, Gen Z is pushing for financial boundaries and sustainability.

However, as economic landscapes shift and generational attitudes evolve, Millennials and Gen Z are approaching this responsibility in different ways. While Millennials tend to accept Black tax as an unavoidable reality, Gen Z is redefining its boundaries, focusing on financial independence and sustainability.

For decades, Black tax has been ingrained in Kenyan households. Many parents sacrificed to educate their children, hoping they would, in turn, uplift the family financially. The spirit of harambee (pulling together) has reinforced this communal obligation, making it almost taboo to refuse financial assistance to struggling relatives.

"I grew up knowing that once I got a job, I would have to help out my younger siblings and contribute to household expenses. That is how it has been for the longest time, seen that with the different generation," says Joan Njeri, 25, a Nairobi-based graphic designer.

Historically, limited job opportunities, lack of generational wealth, and economic instability have made Black tax a necessity rather than a choice. Those who secure stable jobs especially in government, corporate sectors, or abroad are often expected to fund siblings’ education, parents’ medical bills, and even extended family needs.

But as Kenya’s economy evolves, so does the way younger generations view and handle this responsibility. Millennials, were raised in households where financial sacrifice was normalized. Many accept Black tax as part of life and often make long-term financial adjustments to accommodate it. For them, supporting family is a duty, not an option.

Gen Z’s, however, are more vocal about questioning these expectations. With a strong emphasis on financial independence, personal investment, and wealth creation, Gen Z are less likely to prioritize family obligations over individual growth. Many prefer setting financial boundaries, choosing to help family in ways that do not compromise their personal goals.

Omondi Ouma, 27, mentioned that he has seen how his family members have handled Black tax and he believes setting boundaries is very important.

"My older cousins just accept Black tax as part of life. But for me, I feel like setting limits is necessary. You can help family, but it shouldn't come at the cost of your own peace," he added.

Millennials entered the workforce at a time when traditional employment especially in government and corporate sectors was a bit stable. They benefited from job security and structured career growth, which allowed them to accommodate Black tax without major financial strain.

In contrast, Gen Z is navigating a more volatile job market characterized by gig work, short-term contracts, and freelancing. With high youth unemployment rates in Kenya and the rising cost of living, many Gen Z workers find it difficult to balance Black tax with personal financial security. They are more inclined to push back on financial obligations that could hinder their progress.

With traditional financial management tools such as SACCOs, employer pension schemes, and structured savings plans, millennials are able to handle Black tax. They are more likely to use cooperative investments and land-buying groups to create generational wealth.

Gen Z’s, however, are leveraging digital banking and investment platforms. With access to mobile money and alternative investments, they are taking a different approach to wealth accumulation. They are also more likely to prioritize side hustles and passive income streams to avoid dependency on a single job.

While Black tax is driven by love and responsibility, it comes with emotional and mental strain. Many young Kenyans struggle with financial anxiety, guilt, and even burnout as they try to balance personal goals with family expectations.

In African context, most family members, either nuclear or extended tend to get entitled and expect you to pay back, maybe taking their kids to school, and sending money as much as you could. Do not get me wrong, it is a good thing to help, but if you do not have, it is also ok.

Do not please family at your expense both financially and emotionally, it might get overwhelming at times, and it is ok to tell them, no you cannot help as much they expect, but this is what you can do.

"There is a lot of guilt if you say no, especially when family reminds you of their sacrifices. But I’ve realized I need to take care of myself too," says Esther Musyoka, 24.

Social pressure also plays a role. In many communities, refusing to contribute financially is seen as selfish, leading to strained relationships. The emotional burden can be overwhelming, especially for those who feel obligated to support family members without a clear exit strategy

As financial literacy improves and economic landscapes change, the nature of Black tax is also evolving. More young Kenyans are prioritizing sustainable support models, such as group investments, financial planning for parents, and entrepreneurial ventures for long-term security.

Gen Z’s approach may not eliminate Black tax, but reshaping it into a model that encourages shared responsibility rather than complete financial dependency. This shift could be key in ensuring future generations experience financial growth without being held back by cultural expectations.