Wananchi Opinion: Why most Kenyans are one emergency away from poverty

For millions of Kenyans, financial stability is a fragile balance maintained on a limited income and easily disrupted by the slightest shock.

A hospital bill, a funeral, job loss, or a failed harvest is often enough to push a household into poverty.

This situation is not just based on isolated experiences. It reflects a deeper structural issue.

Despite being hardworking and resourceful, many Kenyans lack the financial protection needed to withstand unexpected life events.

This makes them highly vulnerable to slipping into poverty at any moment.

One of the most visible signs of this vulnerability is the low rate of personal savings.

Research by the Central Bank of Kenya and other financial surveys consistently shows that many Kenyans save little or nothing at all.

This is not due to a lack of awareness but rather a result of economic hardship.

The cost of basic needs such as rent, food, transport, and school fees consume nearly all available income.

Whatever remains is often too little to build a strong emergency fund. For those living paycheck to paycheck, saving becomes a luxury rather than a priority.

Health emergencies are particularly devastating. While the Social Health Insurance Fund has made some progress in providing coverage, it still falls short in many ways.

A large number of Kenyans, especially those in the informal sector, remain uninsured.

When a serious illness or accident occurs, families often turn to fundraisers, mobile loans, or selling personal property to raise the required funds.

A single medical crisis can destroy years of financial progress and plunge an entire family into long term debt or poverty.

Loss of income is another common cause of financial distress.

Kenya’s informal economy employs the majority of the population, but it offers no job security, benefits, or retirement support.

A boda boda rider whose motorbike is stolen, a hawker whose goods are confiscated, or a domestic worker who is let go has no financial safety net to fall back on.

Many have no insurance, savings, or backup income. This leaves them extremely vulnerable when disaster strikes.

Mobile lending platforms have added a new layer of complexity to this situation. A wide range of money lending App offer quick and convenient loans.

While they serve an important role in financial access, they are often misused.

Many people borrow to meet day to day expenses, not emergencies. When a real crisis happens, they may already be overextended.

The interest rates on these loans are also high, creating a cycle of borrowing that leads to more debt rather than relief.

Social obligations can also contribute to financial strain. In many Kenyan communities, people are expected to contribute to weddings, funerals, and fundraisers.

While these traditions promote unity and support, they also place heavy financial demands on families who are already struggling.

When combined with emergencies, these obligations can make financial survival even more difficult.

The underlying problem is that Kenya’s systems and institutions have not done enough to support individual financial resilience.

Financial literacy is not widely taught in schools, and many people grow up without learning how to budget, save, or plan for the future.

Insurance coverage remains low, especially among low-income earners.

Government safety programs are often limited and inconsistent. Without strong support, people are left to face financial storms on their own.

To change this situation, Kenya needs to focus on solutions that build long term resilience. Financial education should be made a priority in schools and communities.

More affordable and accessible insurance products should be developed, especially for health and income protection.

Saving and investment tools should be tailored to suit the needs of informal workers and low earners.

Above all, we need to shift the national mindset from reacting to crises to preparing for them.

The reality that most Kenyans are one emergency away from poverty is a sign that change is urgently needed.

Creating a financially resilient population is not just about individual effort. It is a shared responsibility that requires action from families, institutions, and the government.

Only through this collective commitment can the country build a more secure and stable future.

Mr. Abol Kepha Kings is a personal finance coach and a former banker