Experts in push for financial literacy to drive economic growth

Experts argue that empowering citizens with financial knowledge could significantly enhance individual well-being and contribute to the country’s economic resilience.

Recent statistics reveal that only 33% of Kenyans are financially literate, according to a global survey by S&P. This deficit is most pronounced among youth and low-income earners, many of whom struggle with basic financial concepts such as budgeting, saving, and managing debt.

Experts warn that this knowledge gap leaves many vulnerable to predatory lending, chronic debt cycles, and missed investment opportunities.

“Financial literacy is not just a skill; it’s a tool for economic survival,” says Colins Tarus, Head of Marketing, FXPesa

Despite being a global leader in mobile money innovations such as M-Pesa, Kenya still faces significant challenges in financial education. While mobile banking has made financial services more accessible, many users lack the knowledge to maximize these platforms’ benefits.

For instance, some individuals rely on costly mobile loans without understanding the long-term implications of high-interest rates.

“Having access to financial services is only half the battle. Without the knowledge to make informed decisions, people often end up worse off” said Barrack Bukusi, host of Financially Incorrect podcast, which breaks down complex financial topics into relatable lessons, inspiring its audience to take control of their finances.

The push for financial literacy has also gained traction, with various organizations rolling out targeted programs. However, experts insist that a more comprehensive, collaborative approach is required.

They advocate for financial education to be integrated into Kenya’s school curriculum to equip the next generation with lifelong money management skills.

“Banks and fintech companies should go beyond selling products and invest in educating their clients,” added Tarus 

Programs like FxPesa’s free financial workshops and the podcast’s grassroots outreach offer promising examples of how to reach diverse audiences.

‘’Boosting financial literacy is not only a personal benefit but also an economic imperative. A financially savvy population is more likely to save, invest, and participate in entrepreneurial activities, fostering economic growth. Lower default rates on loans and reduced reliance on informal credit systems would also enhance financial stability nationwide’ said Bukusi