Saving and starting business, what you need to know
Kenyans want more guidance from financial institutions on saving effectively and how to start or grow a business.
According to Tala’s “MoneyMarch 2022” report, whose goal was to ascertain Kenyans’ financial literacy levels, health and resilience, surveyed over 423 customers from the Fintech’s client base.
“This report’s main objective was to help us understand our customers, their needs, how their preferences are changing and how we can evolve to meet their needs. In addition, we believe that empowering our customers to make financial decisions based on education, will help break the cycle of over-indebtedness and bring more underbanked Kenyans into the financially healthy circle,” said Teddy Kahiro, Tala , User Research Manager
Teddy Kahiro alluded that one of the key discoveries from the survey was that Kenyans’ financial health and resilience is improving three months into the new year with the country’s economy opening back up post relaxation of some of the Covid-19 restrictions.
Tala’s income had increased in the past six months but 53 % cited higher expenditure in the past six months.
On borrowing trends, 59 percent of customers have increased their borrowing in the last 6 months.
The top reason for 78 percent of the participants taking loans is business-related, to either pay business expenses or add stock, supported by the finding that 8 out of every 10 respondents have side hustles other than their main income source.
With Tala’s Money March campaign now in its third year, the Fintech has committed to promoting financial literacy in Kenya by providing financial education and training to customers through various platforms.
This is an inclusion of the learning center on the website, podcasts with partners keen on boosting financial resilience and health in Kenya and sharing financial education messages on digital assets.
“Financial literacy education will give young people the foundations of future success and can help economically disenfranchised Kenyans out of deprivation,” said Ms. Annstella Mumbi, Tala’s Country Growth Manager.