Nurturing The Culture of Saving: The Mshwari Way

By Juma Fred / September 22, 2016




According to Keynesian Economics, saving consist of the amount left over when the cost of a person’s consumer expenditure is subtracted from the amount of disposable income he earns in a given period of time.

According to a World Bank report, in a news article published on Standard Digital, the savings in the Kenyan households are not only low and declining, but are also lagging behind other economies in the region, which are less economically endowed than Kenya. The report says that in the 1980s, the saving rate in the country was higher than in Senegal, Ghana, Uganda and Tanzania but Kenya has stagnated in the last three decades.

What is more positive is that in the last ten years, according to a report by The 2016 FinAccess household survey, the number of Kenyans formerly included by the financial system has grown by 50 percent. According to the report, over three-quarters, 75.3 percent of Kenyans are now formerly included, up from 66.8 percent in 2013.

The coming of the mobile money transfer in Kenya has greatly helped in the driving of financial inclusion in Kenya. Most Kenyans now use mobile phones to transact as compared to the past before the advance in technology. Currently, most Kenyans need not to go to the banks as all the transactions, from saving, banking, bank statements, withdrawing and all other inquiries are done via phone, thanks to the new technology.

What is the rate of saving in the country at the moment? Have Kenyans embraced the saving culture? What are some of the key drivers of the saving culture in the country?

READ: The Three Commandments of Saving Money

Creating and maintaining a saving culture is a very hard thing to many people. Many people are of the notion that for one to save, one must be an employee and earning some good money. The truth is that whether you are employed, self-employed or still in search of employment, you can still save and become rich.

READ: Developing a Saving Culture

Kenya has often been identified as a society with a weak saving culture. Most Kenyans do not have a saving culture and the majority of them live everyday as it comes. After working hard and gaining some profits, how much do you actually put away for a rainy day?

For the last few weeks, people have been attacking Mshwari but when I asked some of them to tell me why they were protesting, they could not give me a credible answer. I do not write to endorse products but a  defender of the truth, giving credit where it is due and criticizing where it is necessary and for those hurling words at Mshwari do not necessarily know about saving and how the culture has been made strong by Mshwari.

READ: Telling The Mshwari Story

Ask people who use Mshwari to save and they will tell you how convenience the platform is. With Mshwari, one is able to save as little as one shillings. Can you imagine, saving as little as one shilling and that same shilling earns you an interest of 7.35 percent per annum. Mshwari, is not just a place to store your money and it remains stagnant, here, your money grows with time.

Mshwari is for everyone, from the rich to the poor, from the young to the old, for one to save and grow. The saving culture is being developed and enhanced through Mshwari. One of the best feature of this platform is that the more you save, the more you increase your chances of getting a loan as well as the amount you are eligible to take as loan.

 



About Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. You can reach him on: (020) 528 0222 or Email: [email protected]

View other posts by Juma Fred


More Articles From This Author







Other Related Articles








SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (220)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (240)
  • June 2018 (136)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950