Financial Capability in Kenya: Findings from FINACCESS 2009
This report examines the current state of financial capability in Kenya. It uses data collected as part of FinAccess 2009 national survey to explore various dimensions of financial capability.
The FinAccess 2009 national survey attempted to measure financial literacy levels and financial access of Kenyans. It included questions about financial knowledge and behaviors, and provided insights into consumers' financial capabilities, strengths and weaknesses. Key issues that emerged from the survey include:
- Kenyans are aware of financial concepts like budgeting and saving but find it difficult to implement this knowledge, despite using various formal and informal financial strategies;
- Kenyans save more to meet day to day expenses, rather than long term needs;
- Most Kenyans feel they do not need financial advice, particularly those with lower literacy levels;
- Significant parts of the population could be having credit difficulties, although most Kenyans do not seem to have a problem with debt.
The study identified three consumer segments relating to financial capability, namely the struggling excluded, the disciplined planners and the engaged, but sometimes risky, elite.