In Kenya and across Africa, financial literacy has become a buzzword as governments and other stakeholders develop strategies to bring in more people into the formal financial economy which has a direct bearing on raising the standards of living.
In Kenya, significant strides have been achieved over the past one decade in attaining gender inclusivity but the fact is that a substantial gap still exists in bridging financial knowledge and access between men and women.
With a population of approximately 50 million people, only 38 percent of Kenyans are financially literate. And out of this number, only 34 percent of women in Kenya have access to formal financial services compared to 50 percent of the men.
According to the 2019 population census, women make up approximately 50.5 percent of the population in Kenya. And zeroing in on women in attaining financial literacy is important as it has been proven that households led by women who are financially literate and empowered are the biggest catalyst for economic development and take-off in the country.
According to the Financial Access (FinAccess) survey 2021, access to financial education empowers women to effectively participate in decision-making on financial related matters, which ultimately improves the household’s welfare.
The same study reveals that over 70 percent of women in Kenya do not participate in financial decision-making within their households because they are not financially literate
Over the years, a perception has taken root, driven by cultural norms and tradition, that women are risk-averse or simply fear to invest because they have no financial knowledge and also don’t have the money to invest.
This perception reflects deep-rooted societal norms and educational disparities that hinder women's financial autonomy and empowerment.
In many African societies, women are seen as property. Right from birth, women are socialised to believe that they belong to the father and that the biggest honour they can bring to the family is to get married and have children.
Women have been conditioned to focus on household finances for household provisions which are looked upon as short-term term as opposed to men whose focus in financial matters is in wealth generation and investment.
A significant number of women in Kenya work in the informal sector, where they often lack access to saccos, retirement information and access to financial education.
Financial literacy is more than just understanding money; it's about empowerment, independence, and breaking the cycle of poverty.
The road ahead requires the collective effort of governments, NGOs, and individuals to deliver financial education.
The writer is a financial literacy advocate and expert, and co-founder at Ujani.
