To boost financial literacy among Kenyans, the Kenya Bankers Association (KBA), in partnership with the Central Bank of Kenya (CBK) and other stakeholders, launched the ‘Chora Plan’ financial literacy campaign to boost financial literacy and promote economic stability in Kenya.
What is Financial Literacy? This refers to the ability to understand and apply different financial skills effectively, including personal financial management, budgeting, and saving. Financial literacy makes individuals self-sufficient so that financial stability can be accomplished.
With the Chora Plan, the stakeholders within the sector hope to enlighten Kenyans on matters to do with finance and how to manage their cash in line with the prevailing tough economic times where most Kenyans are struggling to make ends meet.
“Financial stability and overall economic growth are fundamentally linked to the financial knowledge and decision-making skills of our citizens,” said Central Bank of Kenya (CBK) Governor Dr. Kamau Thugge.
Dr. Thugge highlighted the campaign’s role in promoting financial inclusion and stability by equipping Kenyans with essential financial knowledge. He said through the campaign, Kenyans will be able to grow financially by knowing when and where to invest.
Read Also: Financial Literacy: Emulating Wealth Building Strategies For Economic Success
Governor Thugge: The Kenyan economy recorded very strong growth in 2023 of 5.6 percent driven by the rebound in agriculture and a robust performance in services, including the finance and insurance sector. Finance and insurance grew by 10.1 percent, which is a very strong… pic.twitter.com/0ezEamVvg4
— Kenya Bankers Association (KBA) (@KenyaBankers) June 11, 2024
On his part, John Gachora, KBA Chairman and NCBA Group Managing Directory said that focusing on practical financial education in areas such as banking, insurance, and pension services can help individuals and businesses make better financial decisions that benefit them and the broader economy.
“The Chora Plan financial literacy campaign is premised on the prevailing low level of savings and high financial illiteracy among among Kenyans. Studies have shown a direct correlation between financial illiteracy and low levels of savings,” he said.
The campaign addresses the low levels of savings and high financial illiteracy rates in Kenya. According to a 2021 Global Financial Literacy Survey, only 38% of Kenya’s population is financially literate.
“It is quite a shame bearing in mind that we pride ourselves as the leading economy in the region. As the banking sector, we understand our role in changing this situation, as financial literacy is the cornerstone of economic empowerment,” noted KBA Acting CEO Raimond Molenje while acknowledging Kenya’s lagging financial literacy levels compared to its East African neighbors.
Visa Country Manager Eva Ngigi highlighted the importance of financial literacy from a young age. “Just like reading and writing is taught in schools, financial literacy is an important skill for the younger generation.”
Read Also: Financial Literacy Opportunities For Rural Agripreneurs