Low levels of financial health among residents of Kenya’s Coastal counties have highlighted the need for greater savings and retirement planning, with experts warning that many workers remain vulnerable to economic shocks despite increased access to financial services.
Statistics from the 2024 FinAccess Household Survey show that only 14.4 per cent of adults in Mombasa are considered financially healthy, while the figures stand at 9.5 per cent in Kilifi, 4.9 per cent in Kwale and 2.5 per cent in Tana River. Taita Taveta recorded the highest level in the region at 20.8 per cent, followed by Lamu at 16.3 per cent.
The findings were discussed during a Financial Wellness and Retirement Preparedness Forum organised by Octagon Africa in Kilifi County, bringing together employees, human resource professionals and business leaders from across the Coast.
Speaking during the forum, Octagon Africa Group Chief Executive Officer Fred Waswa said improved financial inclusion has not necessarily translated into stronger financial security for many Kenyans.
“Financial inclusion is only the beginning. True financial wellbeing is measured by an individual’s ability to withstand economic shocks, achieve important life goals and retire with dignity,” said Waswa.
According to the survey, formal financial access in Kenya rose to 84.8 per cent in 2024 from 83.7 per cent in 2021. However, only 18.3 per cent of the country’s adult population is classified as financially healthy, exposing a gap between access to financial products and the ability to build sustainable wealth.
Waswa noted that inflation, increasing healthcare costs, changing family obligations and longer life expectancy have made retirement planning more urgent than ever.
“Financial wellness, retirement readiness and financial literacy are no longer optional. They are essential life skills that help individuals maintain financial independence throughout their lives,” he said.
Participants at the forum discussed budgeting, debt management, emergency savings, wealth creation and investment opportunities, with experts encouraging workers to cultivate disciplined financial habits.
They advised employees to build emergency funds capable of covering at least six months of living expenses, reduce dependence on costly debt and make use of occupational pension schemes and individual retirement plans.
The forum also highlighted opportunities available through pension funds, collective investment schemes and capital markets, with financial experts stressing the importance of starting early to maximise long-term returns.
Nationally, pension access increased from 15.2 per cent in 2021 to 20.4 per cent in 2024, according to the FinAccess Household Survey, though experts noted that coverage remains below desired levels.
Octagon Africa said the forum forms part of its wider efforts to promote financial literacy and improve retirement preparedness among workers as the Coastal region experiences growing investment and employment opportunities.
