Kenya’s economic pulse is shifting as business ownership rises while full-time employment declines, signalling an evolving approach to financial security amid persistent cost-of-living pressures.

The latest MoneyMarch 2025 report by Tala reveals that business ownership increased by 7 percentage points in 2025, while reliance on full-time employment as a primary income source fell by 5 per cent year-on-year.

Yet, despite these shifts, fewer employed Kenyans are pursuing secondary income ventures, constrained by shrinking disposable income because of the rising cost of living, which has left many with little to invest in traditional side hustles that once provided a financial cushion.

According to the survey, the economic squeeze is evident. Nine in 10 Kenyans surveyed reported financial difficulties in the past six months, with 32 per cent expressing financial stress.

The study indicates that 46 per cent of respondents remain optimistic about their financial futures, a sentiment that mirrors previous years.

“Financial empowerment is not reserved for the privileged few; it is a right that belongs to all of us. Whether you are a student, an entrepreneur, a business owner, or someone looking for a fresh financial start, this campaign is for you,” Annstella Mumbi,  the General Manager of Tala-Kenya said.

The trend of financial adaptation extends beyond individuals to financial institutions. Boniface Kamiti, Manager, Consumer Protection at the Competition Authority of Kenya (CAK), called on digital lenders to redefine their role beyond credit provision, urging them to educate borrowers on responsible credit use and long-term financial stability.

The survey reveals that with rising inflation and income delays, more than a third of Kenyans have increased their borrowing, primarily to cover business expenses, education, and daily living costs.

Notably, confidence in repayment remains high, with 80 per cent of borrowers believing that they can meet their loan obligations.

The study also reveals that 52 per cent of Kenyans now prefer to stick with a single lender, whether a licensed Digital Credit Provider (DCP) or a traditional bank. This shift suggests a growing desire for financial stability and predictability, particularly in an environment where trust in financial institutions remains a key concern.

When asked about their long-term financial aspirations, business and home ownership topped the list. Many Kenyans are actively setting aside 11 to 20 per cent of their income for investments, primarily in savings, Saccos, and chamas, reflecting a culture of collective financial growth.

However, barriers persist. A fear of loss and lack of trust in investment platforms continue to deter many from saving and investing more aggressively. Addressing these concerns will be critical to ensuring that financial resilience translates into sustained economic progress, the survey notes.