The 2024 FinAccess Household Survey Report, jointly released by the Central Bank of Kenya (CBK), Kenya National Bureau of Statistics (KNBS), and Financial Sector Deepening Kenya (FSD Kenya), reveals that 9.9% of Kenyan adults remain financially excluded, with rural youth comprising almost half (45.5%) of this group.
The report highlights major obstacles to inclusion, including a lack of mobile phones (64.1%) and national identity cards (51.5%). Turkana, West Pokot, and Narok counties are among the most excluded, while Kiambu, Nairobi, and Kirinyaga lead in financial inclusion.
Formal financial access rose to 84.8% in 2024, up from 83.7% in 2021, driven by advancements in digital technology that have nearly closed the gender gap in access. However, while the use of mobile money and digital platforms remains high, the survey notes a moderation in growth for services like Fuliza and mobile banking.
- Daily Mobile Money Usage: Increased to 52.6%, more than doubling from 23.6% in 2021.
- Credit Uptake: Grew to 64%, though savings declined to 68.1%, the lowest since 2009.
- Hustler Fund Borrowing: Recorded high uptake, particularly in urban areas.
Challenges and Risks
Debt distress remains a significant concern, with 16.6% of borrowers defaulting on loans entirely, up from 10.7% in 2021. System downtime, unethical practices, and hidden charges also plague users of digital apps and MFIs, with 9.8% of mobile money users reporting financial losses.
Financial Health and Literacy
- Only 18.3% of Kenyans are financially healthy, showing minimal improvement from 2021 (17.1%).
- Green investments, such as solar equipment and tree planting, were reported by 34% of respondents.
- Financial literacy stands at 42.1%, with respondents correctly answering questions on inflation, interest rates, and risk diversification.
Persons with Disabilities (PWDs)
Financial inclusion for PWDs is below the national average, at 77.9%, with only 7% deemed financially healthy.
The survey underscores the need for targeted interventions to address rural youth exclusion, rising debt stress, and persistent county-level disparities. Innovations in digital finance and traditional financial services can help bridge gaps, but consumer protection and financial health must remain priorities.
“The narrowing gender gap is encouraging, but the disparities among counties and the rising debt default rate call for urgent action. A focus on financial literacy and consumer safeguards will be critical in the years ahead,” the report concludes.
