Tag Archives: income

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


COCA-COLA | Going juicy!

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With the intent of expanding production capacity and diversify into other product ranges, coca-cola will invest 5 billion shillings in Kenya over the next three years. The firm’s East  Africa general Manager Mr. Peter Njonjo said that the juice market has a huge market potential and hence contracted about 37,000 farmers to grow mangoes and passion fruits for the company. The firm seeks to start manufacturing juice products in addition to the soft drinks. He stated that some of the investments would go to improving the beverage services plants in Nairobi and Kisumu. To their benefit, this investment will provide a ready and steady market as well as a source of raw materials.

This is good news for the farmers, consumers, as well as the company. This is because farmers will share profits and incur less loss because of the subsidized cost in terms of farming expenditures. The farmers will also have an increase of income. If the materials are available locally, the company will experienced decreased cost of production which is good news for the consumers as the products will be purchased at cheaper prices.

This gesture will contribute greatly to economic growth of Kenya. The choice of investing in farmers will increase the national income and therefore generate more revenue for the country. Farmers will also have a feeling of security. Thumbs up to Coca-cola company as this is directly giving back to society. Farmers are also encouraged to take this opportunity to improve their income.

References:

Coca Cola to invest Sh5 billion in Kenya to grow its product range