A growing number of Kenyans are finding it harder to stay financially on track, with new data showing that only 36 per cent are managing to meet their financial goals.
This is according to a recent report by Tala, which paints a picture of households under pressure as the cost of living continues to rise.
Everyday expenses are taking over
For most Kenyans, the challenge is the rising cost of basic needs.
Food, rent, electricity, and other essential expenses are consuming a bigger share of household income than before. In fact, more than one in five people say their living costs have jumped by over 20 per cent in just the past six months.
As a result, many are being forced to make difficult choices whether to pay bills, buy food, or set aside money for the future.
The report shows that 89 per cent of Kenyans feel the impact of rising costs on their household budgets, a clear sign of how widespread the pressure has become.
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Financial goals are taking a back seat
With incomes stretched thin, long-term financial goals like saving, investing, or growing a business are increasingly being postponed.
Instead, many households are focusing on immediate survival.
This shift highlights a deeper issue: even those who are earning are struggling to translate income into financial progress.
Beyond high costs, unstable income is adding another layer of difficulty.
The report notes that more Kenyans are turning to self-employment and small businesses, but these income sources are often unpredictable. Without steady earnings, planning and saving become much harder.
At the same time, fewer people are supplementing their income with side hustles. The number of full-time workers with additional income streams has dropped, signalling a tightening economic environment.
A small but important positive: more people are saving
Despite the tough conditions, there is a silver lining.
More Kenyans are trying to save, even if it’s in small amounts. About 59 per cent reported saving money in the last six months—an improvement from previous years.
Most people say they are saving for financial security, medical emergencies, business opportunities and education.
This suggests that while financial pressure is high, the desire to build a safety net remains strong.
The rising cost of living is reshaping financial behaviour and Kenyans are spending more on essentials, saving where they can, delaying long-term plans and struggling with unpredictable income
