More Kenyans are now better equipped to deal with unexpected challenges, such as medical emergencies or loss of income, without experiencing severe financial distress, demonstrating increased resilience and stability.
According to the recently released 2025 Economic Survey, 33.3 percent of the population was able to manage financial risks last year, up from 23.3 percent in 2021.
Mary Wambui, a 38-year-old mother of two from Nairobi, attributes this resilience to the Covid-19 pandemic, which taught people important lessons.
"After the pandemic, people realised that they were not indispensable in their jobs and that relying on a single source of income was risky. This was something that many people hadn't really thought about before Covid-19," she says.
However, Julian Rowa, an academic and economic analyst, notes that this newfound resilience cannot be easily explained by established economic theories, principles, policies, or political rhetoric.
"The idea that Kenyans' ability to cope with financial risks needs to be justified raises fundamental questions. Is this ability a social trait (creativity in overcoming challenges), a psychological aspect (mental toughness), or an economic trait (in terms of factors of production)? Has this resilience translated into wealth creation and actual money in people's pockets?
Dr Rowa notes that financial risks can affect anyone, regardless of region or income bracket.
"It's hard to talk about income stability in the face of pressure on payrolls and profit margins. The external environment in which different income groups operate is the same. All factors considered, they experience similar impacts. All regions in Kenya are subject to the same conditions, and no one has a clear competitive advantage,” he says.
"There is an urgent need to improve accountability through efficient and effective government processes. While employment patterns may have changed and opportunities may have increased, these factors do not insulate Kenyans from defined financial risks," he adds.
However, he says the resilience could be attributed to better debt management, planning and savings habits.
“Kenyans are also becoming more aware of the need for financial prudence, driven by a desire to maintain their livelihoods, if not their standard of living,” says Mr Rowa.
"Debt management has become a critical part of life for many Kenyans, requiring adjustments to endure," he adds.
Joseph Nyaberi, a second-hand clothes shop owner in Nairobi, says mobile banking has helped him save money.
"My job is quite tempting and risky, and if you lack financial discipline, you can end up eating into your stock. Now I always transfer my daily sales to my Sacco accounts," he says.
According to Belinda Koome Kiplimo, senior investment advisor at Azara Wealth, the days of physically visiting a fund manager's office, meeting with an advisor or relying solely on email for personal financial planning are long gone.
She notes that the rise of digital tools - such as apps, WhatsApp channels, and webinars - has significantly improved financial education, especially since the Covid-19 lockdown. It's now common for clients to discuss or initiate the creation of emergency funds, which was less common before.
"Local apps and websites now offer embedded calculators for mortgages, retirement income replacement, and compound interest, as well as investment dashboards that help users project costs and future financial needs," she explains.
This allows individuals to adjust their finances to meet these projections or make informed decisions about their financial future, which is essential for managing financial risk.
Despite their benefits, Rowa points out that digital financial tools also present challenges.
"These platforms face challenges that can lead to financial risk, such as the lack of robust credit scoring tools and Know Your Customer (KYC) processes. For example, many Kenyans have more than one mobile phone line to manage financial risk in terms of creditworthiness and debt-to-income ratio," he says.
As for the sustainability of these improvements in financial resilience, Rowa says, "We need to look more closely at this 'improvement' to understand the factors at play. What does the KBS submission reflect?
Without clarity, it would be misguided to discuss sustainable action. The biggest risk to this 'progress' is how it has been measured and understood, making it difficult to call for action. A more robust survey is needed for analysts and decision-makers to triangulate."
However, he stresses that SMART planning is essential to further strengthen financial resilience, particularly for low-income or informal sector households.
Setting Specific, Measurable, Achievable, Relevant and Time-bound (SMART) goals is an effective way to plan steps to achieve long-term goals, helping to turn ideas into action.
"Financial resilience is the result of SMART planning supported by excellent execution," explains Dr Rowa.
