Category Archives: Educational

Concerns Over Kenya’s Competency-Based Curriculum Implementation

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Kenya’s ambitious shift from the long-standing 8-4-4 education system to the Competency-Based Curriculum (CBC) is facing mounting scrutiny as the first cohort of Grade 9 learners prepares for the pivotal transition to senior school and the selection of career pathways. This significant educational reform, intended to cultivate practical skills and competencies for the 21st century, has been met with growing apprehension from parents and the general public. Key concerns center on the readiness of schools to accommodate the new curriculum, particularly regarding infrastructure and resources, the preparedness and training of teachers to effectively deliver the competency-based approach, and the escalating financial burden placed on families to support their children’s learning. The lack of clear communication about the structure of senior school pathways and the specializations offered by different institutions has further amplified anxieties, leaving many stakeholders uncertain about the future direction of their children’s education.

A Report by NTV Kenya

A deeper examination reveals a multitude of specific challenges hindering the smooth implementation of the CBC, especially as it enters the senior school phase. Many public schools grapple with inadequate infrastructure, including classrooms and essential laboratories for STEM-related subjects, raising doubts about their capacity to effectively deliver the curriculum. Teachers, while some have received training, often feel ill-prepared for the hands-on, skill-based learning methodologies required by the CBC, particularly within the specialized senior school pathways. The financial strain on parents continues to be a major point of contention, with the costs of specialized learning materials and project-based assessments adding to the already significant expenses of education. Furthermore, the early specialization inherent in the CBC, with learners choosing career pathways at the end of Grade 9, has sparked concerns about potentially limiting future opportunities if these choices are not well-informed. The availability and quality of guidance and counseling to support learners in making these crucial decisions are also under question, with fears that inadequate support could lead to misaligned choices and unfulfilled potential.

A Report about Pathways to Senior School by NTV Kenya

In response to these widespread concerns, the Kenyan government has acknowledged the challenges and outlined various initiatives aimed at addressing them, including policy statements, transition guidelines, and teacher training programs . However, expert analyses consistently point to persistent issues such as inadequate teacher training, limited resources and infrastructure, financial burdens on families, and policy coordination challenges . Recommendations from education experts emphasize the need for enhanced and continuous teacher training, prioritized allocation of resources, effective engagement with parents and stakeholders, and sustained investment in school infrastructure . As the country navigates this critical juncture in its educational transformation, addressing these multifaceted concerns will be paramount to ensuring the successful implementation of the CBC and realizing its intended benefits for Kenyan learners .  

References:

Nation Grade 9 learners to choose senior school pathways in second term

Nation CBC: What parents and stakeholders want in transition to senior school

The Standard Maths no longer compulsory as CBC pioneers set to pick careers

The Standard Concerns over transition of Grade 9 learners to senior secondary school

Citizen Digital Wananchi Opinion: Why many are moving kids to International Schools

Kenyan Teachers Face Financial Crisis Amid Rising Deductions

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Kenyan teachers are grappling with a severe financial squeeze as rising salary deductions drastically slash their take-home pay, fueling widespread frustration and discontent. A key point of contention is the Social Health Authority (SHA) deduction, introduced in October 2024, which mandates a 2.75% contribution from gross salaries with no cap, replacing the previous National Health Insurance Fund (NHIF) system. Teachers argue that the benefits do not justify the steep increase in costs, particularly when combined with other deductions, including pension contributions, the housing levy, and higher Pay As You Earn (PAYE) taxes. A teacher in Job Group C3, for instance, now takes home as little as Ksh23,936 from a gross salary of Ksh81,584 after deductions—an alarming reduction that makes affording basic necessities increasingly difficult. These financial strains have pushed teachers into the streets, with protests and strikes becoming more frequent as they demand relief from what they perceive as excessive and unfair financial burdens. Adding to their woes, a Ksh27 billion funding shortfall in the education sector has sparked fears of salary delays, compounding the already precarious situation.

A Citizen Digital Report

The financial crisis has also extended into the healthcare sector, where teachers have been hit by severe restrictions imposed by their insurance provider, Minet. In February 2025, teachers from six North Rift counties staged a two-week strike to protest the limitations placed on their access to medical care. Many were barred from seeking treatment outside designated Level 4 and Level 5 hospitals, leading to overcrowding and reduced quality of healthcare. The Kenya National Union of Teachers (KNUT) and the Kenya Union of Post-Primary Education Teachers (KUPPET) issued a 24-hour ultimatum to the Teachers Service Commission (TSC) to address these grievances. Though the strike was called off after negotiations, many teachers remain skeptical about whether lasting solutions will be implemented. Meanwhile, teachers are still reeling from agency fee deductions imposed by the TSC in August 2024, which affected non-unionized primary school teachers, further exacerbating tensions between educators and the government. These financial deductions, coupled with a rising cost of living, have eroded the real value of teacher salaries over the years, even though Kenyan teachers remain among the best paid in East Africa. However, with over 50% of teachers concentrated in lower job groups earning between Ksh16,692 and Ksh29,918, concerns about career stagnation and wage disparity persist.

The government argues that these deductions are necessary to fund critical services and national development programs, yet teachers’ unions have fiercely opposed the lack of consultation and transparency in their implementation. Strikes and protests have become a common feature in the education sector, with KUPPET and KNUT repeatedly demanding better wages, improved working conditions, and a review of the 2021-2025 Collective Bargaining Agreement (CBA). The revised deductions system—implemented in phases since 2023—has seen the introduction of new NSSF rates, a 1.5% housing levy, and the removal of tax reliefs, further squeezing teachers’ earnings. The mounting dissatisfaction highlights a deeper structural issue: the delicate balance between revenue generation and employee welfare. Possible solutions include policy reforms to ease the tax burden on lower-income earners, transparent negotiations between the government and teachers’ unions, and alternative funding mechanisms such as public-private partnerships. As Kenya navigates this crisis, the outcome of these discussions will be critical in determining the future of the country’s education sector and the financial well-being of its teachers.

References:

The Standard Teachers lament over shrinking payslips as SHA deductions begin

Kenyans.co.ke Teachers Threaten Strike in 6 North Rift Counties Over Insurance

Business Daily Payslip deductions set to add burden on struggling Kenyan employees

Kenyans.co.ke Employed Kenyans Face Further Salary Decrease as SHA Deductions Take Effect

Nation Kenyan teachers not that badly paid, data shows

Business Daily Hospitals turn away teachers, police over unpaid claims


AI Revolution in Kenya: Challenges and Opportunities

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Kenya is riding the wave of an AI revolution, with the technology rapidly being adopted across various sectors, including healthcare, agriculture, and finance . The country boasts the highest AI readiness ranking in East Africa and 84th globally, driven by increased internet penetration, a young tech-savvy population, and government support. Initiatives like the National AI Strategy 2025–2030 aim to establish Kenya as a regional AI hub . The recent AI Innovation Summit in Nairobi brought together industry leaders and innovators to discuss the transformative potential of AI in driving efficiency, innovation, and sustainable growth . Speakers emphasized the need for organizations to develop comprehensive AI strategies, invest in infrastructure and talent development, and foster collaboration to remain competitive in a rapidly evolving digital economy .  

A Report by DW

However, this rapid growth also brings significant challenges. A major concern is the exploitation of Kenyan workers on online platforms for data labeling. Reports reveal that these workers, often lured by the promise of stable employment, face low wages, poor working conditions, and a lack of job security. Some are even exposed to harmful content, including graphic violence and sexual abuse, leading to mental health issues. These findings highlight the urgent need for ethical frameworks and regulations to protect AI workers in Kenya and ensure that the benefits of AI are shared equitably.

Furthermore, there are concerns about the potential for AI-driven automation to displace low-skilled workers and exacerbate existing inequalities . The use of AI for disinformation and the government’s efforts to regulate AI-generated content raise concerns about freedom of expression and potential censorship . Addressing these challenges through ethical frameworks, robust regulations, and public awareness campaigns will be crucial to ensuring that AI benefits all of Kenyan society .  

References:

Research Leap The Adoption of Generative AI in Kenya: A Critical Analysis of Opportunities, Challenges, and Strategic Imperatives

CIO Africa AI Innovation Summit Calls For AI Adoption To Drive Business Growth

Citizen Digital AI Innovation Summit urges AI adoption to drive business growth

Vellum Highlights of the Kenya National AI Strategy 2025–2030





Is Lake Nakuru’s Ecosystem at Risk Due to Pollution and Illegal Fishing?

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Lake Nakuru National Park, a renowned Kenyan wildlife sanctuary and UNESCO World Heritage Site, is facing a multifaceted crisis. While celebrated for its breathtaking scenery and diverse wildlife, the park is grappling with encroachment, illegal fishing, and escalating sociopolitical and moral conflicts. These issues are intertwined with the adverse effects of pollution, primarily from untreated sewage and industrial waste discharged into the lake from Nakuru town. This pollution not only contaminates the water and renders the fish unsafe for human consumption but also disrupts the delicate balance of the ecosystem, threatening the survival of various species and the livelihoods of surrounding communities.

A Report by Nakuru Today

The presence of fish in Lake Nakuru, once a predominantly saline lake, adds another layer of complexity to this crisis. The introduction of fish, primarily tilapia, can be traced back to an accidental spill from a fish farm uphill in the 1960s. This incident, coupled with the rising water levels that began in 2010, transformed the lake’s environment, making it more habitable for freshwater fish. The rising waters also submerged riparian land, displacing communities and intensifying human-wildlife conflicts. As a result, many residents turned to fishing as a source of livelihood, leading to a surge in illegal fishing activities despite the ban and health risks associated with consuming contaminated fish.

This situation has given rise to a clash between conservation efforts and the socioeconomic needs of local communities. While the Kenya Wildlife Service (KWS) enforces regulations against fishing and encroachment, impoverished communities view the lake as a vital resource for survival. This tension is further exacerbated by allegations of brutality and abuse of power by KWS officers against individuals caught fishing . Addressing this crisis requires a comprehensive approach that prioritizes pollution control as a means to restore the lake’s ecosystem and ensure the safety of the fish. This would pave the way for regulated fishing activities that benefit local communities while upholding conservation goals. Furthermore, fostering dialogue and collaboration between KWS and the community, ensuring ethical conduct within KWS, and promoting alternative livelihood opportunities are crucial steps towards achieving a sustainable and just solution.

References:

Nation The slow death of Lake Nakuru

Mtaa Wangu Nakuru X Space discussion reveals deeper issues in Lake Nakuru fishing menace

Kenya News Agency Uncertain future for wildlife and native plant species at Lake Nakuru National Park as invasive plant species wipe out grasslands and strangle natural fauna

Radio Baraza The Threat to Nakuru’s Green Belt: Human Encroachment Endangers a Vital Ecosystem

Understanding Marburg Virus: Risks and Prevention Strategies

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Marburg virus disease (MVD) is a severe hemorrhagic fever with a high fatality rate, averaging around 50% in past outbreaks . The virus, first identified in 1967, is transmitted to people from fruit bats and spreads through human-to-human contact with bodily fluids or contaminated materials. Kenya is particularly vulnerable due to its proximity to Tanzania, where an outbreak is currently ongoing. The risk is further heightened by increased cross-border movement and Kenya’s position as a major transit hub in East Africa.

A lesson on MVD by JJ Medicine

The Marburg virus is transmitted to people from fruit bats and spreads through human-to-human contact with bodily fluids or contaminated materials. Symptoms typically begin abruptly with fever, headache, and muscle aches, which can quickly escalate to severe internal bleeding, organ failure, and shock. Early supportive care, including rehydration and symptom management, is crucial for improving survival rates. Kenya, with its position as a major transit hub in East Africa, is particularly vulnerable to the spread of MVD . The country’s healthcare system faces challenges such as underfunding, recurring healthcare worker strikes, and under-resourced primary health facilities, which could hinder effective response efforts. Moreover, the initial symptoms of MVD often mimic common illnesses like malaria, potentially leading to misdiagnosis and further transmission within households and healthcare settings.

A report on Marburg Virus by Ten Health

While no approved vaccines or treatments for MVD exist, Kenya is taking significant steps to enhance surveillance and response mechanisms through its comprehensive Preparedness and Response Plan. This plan not only includes crucial readiness assessments aimed at evaluating the country’s ability to respond effectively to potential outbreaks but also involves extensive training programs for healthcare workers to ensure they are well-equipped to handle cases of MVD safely and efficiently. The Ministry of Health is proactively coordinating with regional partners and neighboring countries to build a united front against the virulent disease, urging the public to remain vigilant and report any suspicious symptoms immediately. Additionally, Kenya is receiving vital support from international organizations, which offer technical expertise, logistical assistance, and resources essential for managing public health crises. Furthermore, Kenya aims to strengthen its healthcare system through infrastructure improvements, enhance surveillance capabilities at all points of entry, and actively engage the local community in awareness campaigns. By fostering collaboration and communication, the country aspires to effectively combat MVD and other infectious diseases, ensuring public health and safety for all its citizens.

References:

CEPI Marburg – What it is, and what it is not

World Health Organisation Marburg Virus Disease–United Republic of Tanzania

World Health Organisation Marburg virus disease

The Guardian Suspected outbreak of deadly Marburg virus disease kills eight in Tanzania

Citizen Digital MoH intensifies border screening for Ebola, Marburg virus

KBC Gov’t steps up border surveillance as Mpox, Marburg and Ebola threats loom

The Star CS Barasa: Kenya remains on high alert over Marburg virus

The Star Marburg Virus Disease: Kenya at high risk







How Kenya Plans to Lead Africa in Cryptocurrency Regulation

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Kenya is boldly stepping into the digital finance arena by moving to legalize cryptocurrencies, marking a departure from its previously restrictive stance on digital assets. Driven by Treasury Cabinet Secretary John Mbadi, this initiative aims to capture the economic potential of the burgeoning underground crypto market. The proposed regulatory framework seeks to strike a balance between fostering innovation and ensuring robust consumer protection, addressing risks such as money laundering and cybercrime. By leveraging its advanced mobile money infrastructure, Kenya plans to integrate blockchain technology into key areas such as logistics and supply chain management, enhancing transparency and efficiency.

A report by Mrwhosetheboss

The country’s strategic push positions it to lead in digital finance, aiming to enhance financial inclusion and streamline international trade through a competitive cryptocurrency market. Central to this effort is the adoption of global standards, as emphasized by the International Monetary Fund (IMF), which advises aligning Kenya’s regulatory framework with international norms including the IMF/World Bank Bali Fintech Agenda. The framework should address existing risks and enhance cross-sector cooperation for market oversight. It underscores the need for legal certainty and cross-border regulatory arrangements. Additionally, the government must focus on financial literacy to safeguard against scams, as it also seeks to increase tax revenues from the crypto sector, targeting KSh 60 billion, a significant rise from the previous KSh 10 billion.

Despite these ambitions, challenges remain, particularly concerning infrastructure gaps and low public awareness of cryptocurrency risks. The volatility of digital currencies also poses challenges for investors. The government is prioritizing education and navigating internal debates over regulations like the Capital Markets (Amendment) Bill 2023. Kenya’s actions mirror a wider continental trend, joining African nations such as Nigeria, where stablecoins are combating inflation, and South Africa, which is blending traditional finance with cryptocurrency under clear regulatory guidance. Kenya stands at a pivotal juncture, poised to reshape its economic landscape while setting a standard for digital innovation and regulation across Africa. Through strategic implementation and international collaboration, Kenya is geared to lead Africa into a new era of digital finance.

References:

Finance Magnates Kenya Drafts Policy to Legalize Cryptocurrencies, Expand Digital Economy

Live Bitcoin News Kenya Plans to Legalize Cryptocurrencies with New Policy

Africa Logistics Kenya’s Move to Legalize Cryptocurrency: A Game-Changer for Logistics in Africa

Africa Tech Summit The State of Crypto in Kenya

Business Daily Kenya moves to regulate Bitcoin trade on grey listing risk

Crypto Briefing Kenya set to legalize crypto, says Finance Minister John Mbadi

Cointribune Crypto: IMF Urges Kenya to Align with Global Regulations

The Star Kenya’s Digital Gold Rush: The Rise of Cryptocurrency Trading

MSN IMF lists recommendations to manage crypto in Kenya, offers to support govt in policy framework

Observer Voice IMF Urges Kenya to Strengthen Crypto Regulations

Business Daily Why Kenya should prioritise passing of crypto regulations




Global Risks of Space Junk: Lessons from Kenya’s Incident

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The December 30, 2024 incident in Mukuku village, Makueni County, Kenya, brings to the forefront the growing issue of space debris, which poses increasing risks as human activities in space continue to expand. A separation ring from a rocket, a part of the vast assortment of space debris, crash-landed in the remote village, stirring significant panic among local residents. This separation ring, with a diameter of 2.5 meters and weighing around 500 kilograms, represents a mere fraction of the thousands of defunct satellites and approximately 34,000 pieces of debris larger than 10 centimeters orbiting Earth today. Despite the disturbance, there were no injuries reported, largely owing to its landing in a non-residential area. As space missions become more frequent, the probability of debris surviving atmospheric re-entry and affecting populated areas increases, raising global concerns about the safety and sustainability of our activities above Earth’s atmosphere.

A Report by Interesting Engineering

In response to the incident, Kenyan authorities, led by the Kenya Space Agency (KSA), swiftly moved to identify and secure the debris, coordinating with various national bodies such as the Kenya Nuclear Regulatory Authority and the Kenya Defense Forces to ensure public safety. These measures involved confirming the non-radioactive nature of the debris while investigating its origin to adhere to international space laws. This scenario underscores the urgent need for more refined systems to track space debris and implement early warning mechanisms. Currently, efforts are underway to bolster Kenya’s national preparedness by developing comprehensive response strategies and public education programs aimed at mitigating the risks posed by space junk. Educational campaigns are critical in providing citizens with essential knowledge on how to safely respond to such unexpected incidents, underscoring the broader implications of the sustained presence of space debris.

Globally, the presence of space debris remains an alarming challenge, with approximately 128 million pieces larger than 1 millimeter rotating in orbit, threatening not only satellites and ground infrastructure but also potentially leading to the Kessler Syndrome. This scenario envisions a cascading effect of collisions that could render low Earth orbit unusable. The risk is exacerbated by planned mega-constellations of up to 50,000 new satellites by companies such as SpaceX and Amazon. These developments necessitate a coordinated international response involving innovative solutions like satellite removal technologies and compliance with post-mission disposal protocols. Just as the Mukuku village incident serves as a poignant reminder of the complex challenges posed by space exploration, it also highlights the need for cohesive efforts to manage and mitigate these risks, safeguarding both current and future generations’ ability to harness space sustainably and securely.

References:

Euro News Kenya investigates giant piece of space debris that crash landed in a village

The New York Times A Half-Ton Piece of Space Junk Falls Onto a Village in Kenya

Nation Object that fell from the skies identified as separation ring from a rocket

The Standard Experts warn of more space debris

Independent Mysterious giant metallic ring falls in Kenya

Natural History Museum What is space junk and why is it a problem?

Importance of Stakeholder Engagement in Kenya’s CBC Rollout

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As the countdown to January 6, 2025, continues, the challenges of transitioning Grade 9 learners under Kenya’s Competency-Based Curriculum (CBC) remain pressing but not insurmountable. Choosing this moment to abandon the CBC would only deepen the disruption experienced throughout the education sector. Instead, it is crucial to address the systemic gaps that currently hinder the curriculum’s success. Paramount to these efforts is the need for timely and transparent disbursement of the KSh 15.3 billion allocated for infrastructure and resources. Schools must complete critical projects to accommodate the new cohort of learners adequately. Simultaneously, a renewed focus on teacher training is vital; educators must be equipped with the skills necessary to deliver the CBC effectively. Without this commitment to human capital development, the curriculum risks becoming little more than policy rhetoric.

KTN Report

Parents and communities play a pivotal role in this transition, serving as essential stakeholders in the education process. It is crucial for parents to actively engage with schools and view educational reforms as a shared responsibility. As the saying goes, “if you think education is expensive, try ignorance,” underscoring the importance of investing in future generations. Therefore, parents must participate actively, even amidst holiday distractions, by supporting their children’s learning journey. Local leaders and non-governmental organizations can support these efforts by leveraging resources and providing technical expertise where needed, especially in marginalized areas. A community-driven approach is key to ensuring a sustainable and inclusive rollout that benefits all learners.

On a broader scale, Kenya must critically evaluate its approach to educational reform. Drawing insights from successful models, like Finland’s competency-based education, can offer valuable guidance. However, these insights must be adapted meaningfully to reflect Kenya’s socio-economic realities. Developing tailored solutions requires engaging educators, parents, and learners in the reform process, creating a curriculum that resonates with the nation’s specific needs. As Kenya progresses, the necessary shift from short-term fixes to a comprehensive and holistic educational strategy, encompassing infrastructure, teacher training, and curriculum development, will be vital. Addressing these foundational issues will allow the CBC to transform into a tool for equitable and effective education. The upcoming January transition presents a crucial opportunity for Kenya to reaffirm its commitment to educational excellence and establish a solid foundation for its learners’ futures.

References:

Nation Grade 9: Staring at a crisis

Kenyans.co.ke Education Ministry Ready for Grade 9 Transition

Nation Move swiftly to avert looming Grade 9 crisis

The Standard 50 days to Grade 9 rollout: Are schools ready for CBC transition?

The Kenya Times Govt Addresses Looming Crisis in Schools Ahead of Reopening

The Star Ruto: We’re ready for Grade 9 transition in 2025

Nation Ruto says government is ready for Grade 9, but reality on the ground is different

Nation Why Grade 9 roll-out could be chaotic for schools

Kenya News Agency Kenya-Finland strategizes on CBC implementation

The Star Finland partners with Kenya to enhance CBC

Challenges Facing Kenya’s Grade 9 Education Transition

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With less than a month before Grade 9 learners resume studies on January 6, 2025, the readiness of Kenya’s education system remains a significant concern. Many schools are struggling with infrastructural challenges, with some yet to begin construction of new classrooms, while others lag behind schedule. This delay has been compounded by the government’s slow disbursement of funds to support the transition. Even where construction is underway, reports of shoddy workmanship have emerged as contractors, working on tight budgets or without funds, race against time. These logistical shortcomings have left education stakeholders, including parents and teachers, questioning the feasibility of a smooth transition to the final stage of Junior Secondary School (JSS). Staffing shortages have also compounded the problem, as the recruitment of 46,000 teachers since 2023 has barely scratched the surface of the human resource needs in schools under the Competency-Based Curriculum (CBC).

Citizen Digital Report

The issues plaguing the Grade 9 rollout reflect broader systemic challenges inherent in implementing CBC. Since its introduction, CBC has faced criticism over inadequate preparation and a lack of alignment with local realities. Kenya’s model has largely drawn inspiration from foreign systems, particularly Finland’s acclaimed competency-based education, yet it lacks the supportive structures that underpin success in such contexts. Finland’s achievements are rooted in a robust system of teacher training, well-equipped facilities, and motivated educators, elements that remain weak or absent in Kenya’s education landscape. Sub-Saharan Africa’s broader experience with competency-based curricula offers cautionary lessons. In countries like Tanzania, Rwanda, and Zambia, the transition to CBC has been marred by poor understanding among teachers, inadequate training, and insufficient resources. Many educators in these regions have reverted to traditional teaching methods, highlighting the gap between lofty aspirations and ground realities.

The parallels are striking. Kenya’s educators face similar challenges, with a significant proportion lacking the training needed to implement CBC effectively. Parents, too, have expressed frustration with what they perceive as a rushed and poorly communicated rollout. Meanwhile, resource constraints remain a glaring issue, leaving many schools ill-equipped to handle the transition. The lessons from other African nations emphasize the dangers of importing education systems without tailoring them to local needs. In Kenya, just as in Zambia, Rwanda, and Tanzania, teachers struggle to adapt to a curriculum designed for contexts vastly different from their own. While the government continues to assure stakeholders that CBC will transform the country’s education system, the reality on the ground suggests that urgent interventions are needed to avert chaos when Grade 9 resumes.

References:

Nation Grade 9: Staring at a crisis

Kenyans.co.ke Education Ministry Ready for Grade 9 Transition

Nation Move swiftly to avert looming Grade 9 crisis

The Standard 50 days to Grade 9 rollout: Are schools ready for CBC transition?

The Kenya Times Govt Addresses Looming Crisis in Schools Ahead of Reopening

The Star Ruto: We’re ready for Grade 9 transition in 2025

Nation Ruto says government is ready for Grade 9, but reality on the ground is different

Nation Why Grade 9 roll-out could be chaotic for schools

Kenya News Agency Kenya-Finland strategizes on CBC implementation

The Star Finland partners with Kenya to enhance CBC

Redefining Financial Success in Kenya: From Access to Wellness

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Kenya’s financial revolution has been celebrated globally, particularly for its high level of financial inclusion, which has seen mobile money platforms like M-Pesa bring banking to the fingertips of millions. Yet, the 2024 FinAccess Household Survey paints a less rosy picture, with over 81.7% of Kenyans still struggling to achieve financial health. The emphasis on access has not translated into the ability to save, invest, or absorb shocks. Many households are burdened by daily financial stress, leaving them vulnerable to crises and unable to plan for long-term goals. This imbalance underscores the need to redefine success in financial systems from mere inclusion to fostering holistic financial wellness.

Bloomberg TV Report

The influx of mobile loans, driven by the proliferation of digital lenders, reveals the challenges of unregulated financial innovation. While these platforms provide crucial access to credit, their high interest rates and predatory practices exacerbate financial stress, particularly for low-income households. The lack of proper consumer protection has trapped many in debt cycles, undermining the benefits of financial inclusion. Treasury CS John Mbadi’s call for banking reforms to lower lending costs aligns with the need to create a more equitable financial environment. Addressing these issues requires not just regulatory measures but also partnerships between financial institutions, government, and fintech players to design fair and sustainable credit solutions.

CNBC Report

Despite Kenya’s improving macroeconomic indicators, such as reduced inflation and currency stabilization, the benefits have yet to trickle down to the majority of households. Achieving financial health will require targeted interventions, including promoting financial literacy, fostering savings habits, and addressing systemic inequities. By focusing on affordability, education, and consumer protection, Kenya can create a financial ecosystem that empowers its citizens to not only access but thrive within the system. Closing the gap between inclusion and health is not just an economic imperative but a pathway to improving the overall well-being of millions.

References:

KIPPRA Building Kenya’s Financial Health Amidst Increasing Financial Inclusion

Bank of America Financial health vs. financial wellness—are they the same?

FSD Kenya 2024 FinAccess Household Survey: Key insights into Kenya’s financial landscape

Xinhua Kenya’s financial inclusion hit 84 percent amid policy reforms, digitization: report

The Standard Majority of Kenyans in poor financial health – survey

The Kenyan Wall Street CS Mbadi Turns the Heat on Banks on Borrowing Costs

The Star Stakeholders call for partnerships to enhance financial inclusion