66% Of Kenyan Millennials Are Borrowing To Survive

By Soko Directory Team / Published November 25, 2020 | 8:55 am




COVID-19 has had a massive impact on the spending and savings of people across generations, but no group more so than Millennials, (those aged 25 to 44), according to Standard Chartered’s latest global survey.

Globally, Millennials are the most likely to be struggling to meet day-to-day expenses (41 percent) and report higher levels of borrowing in the last month (35 percent).

Yet, faced with these challenges, the pandemic has galvanized this generation to better prepare for their financial future, encouraging Millennials to make changes to how they manage their money.

The study of 12,000 adults across 12 markets – Hong Kong, India, Indonesia, Kenya, Mainland China, Malaysia, Pakistan, Singapore, Taiwan, UAE, the UK, and the US – is the third in a three-part series, looking at how COVID-19 has transformed consumers’ way of life, and what changes could be here to stay.

While the first survey focused on the pandemic’s impact on earnings, and the second looked at changing spending habits, the final survey provides new insights into how the global health crisis has altered the way people are managing their money day-to-day, in pursuit of their long-term goals.

In Kenya, 88 percent of people  (64 percent globally), have found managing their money more difficult since the start of the COVID-19 outbreak, but Millennials in Kenya (90 percent compared to 70 percent globally) have found it hardest.

Given these challenges, it is unsurprising that 64 percent of Kenyans report an increase in their borrowing in the past month, the highest out of all markets surveyed. Kenyans are also the most likely (93 percent), globally, to say they want to be better at managing their finances.

Despite significant economic challenges caused by the high rate of unemployment in the country and exacerbated by the COVID-19 pandemic, Millennials were – as observed from the poll, more likely than the older generations to be in active pursuit of long-term goals.

“33 percent of Millennials in Kenya are saving for a major purchase such as a new car or home, compared to 23 percent of those over 45 whilst another 38 percent of Millennials are actively trying to invest better, compared to 31percent of those over 45,” said Standard Chartered Head of Retail Banking, Edith Chumba.

Millennials in Kenya want to better track and budget their spending (60 percent); 71 percent want to alter their daily spending; and 21 percent have started using a new money management or budgeting app since the pandemic began, with 81 percent of those who haven’t yet embraced these digital tools planning to do so in the next three years.”

Of those who have used new ways to manage their money since the start of COVID-19, most people globally have had a positive experience.

While Kenya’s Millennials are 75 percent more likely than those over 45 to have started using a money management or budgeting app for the first time during COVID-19, it is actually those over 45 who report having the most positive experience using these tools – 85 percent compared to 81 percent of Millennials.

But this embrace of new technology to help manage money amid the current economic turmoil may be why Millennials are more confident than older generations that they can achieve their long-term financial goals. One-third of Kenya’s Millennials (36 percent) are more confident than they were before the pandemic started.

In contrast, only 22 percent of those over 45 in Kenya feel more confident they’ll reach their financial goals, with those over 55 the least confident about achieving their financial goals since the COVID-19 outbreak began.

Meanwhile, across all generations, the pandemic has made people more careful with their savings and spending and less likely to splurge.

When asked what they would do, if given the equivalent of £1,000 by their Government with no strings attached, the most common responses globally were to use the money to pay off debt, cover day-to-day expenses or save for the long-term.

In Kenya, more than half (55 percent) of people would use the money to cover existing spending commitments such as housing, food, and transport, while only three percent would spend the money on a holiday, either foreign or within Kenya.





About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author






Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2021
  • January 2021 (110)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (188)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 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