Youth is a circumstance that all of us can’t do anything about. The trick is to grow up without getting old, to learn from others without flying too close to the sun to burn our wings. Youth is a critical time for anyone and any country and more so when it comes to money, investments, and securing the future of both the youth and the country.
Kenya’s youth, comprising approximately 75% of the nation’s 47.6 million people as of 2019, play a pivotal role in the country’s socioeconomic landscape. In 2022, the literacy rate among individuals aged 15 to 24 reached 95.73%, marking a significant improvement from 86.53% in 2014. This means that Kenyan youth are among the most educated on the African Continent and the world at large, and this is both a powerful opportunity and a dangerous change. Powerful because if the youth are harnessed well, Kenya can become a developed country in under a decade, and if not, then Kenya will mimic the ruins of ancient civilizations.
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On the digital front, social media usage is notably high among Kenyan youth. As of December 2024, Facebook had approximately 17 million users in Kenya, while platforms like WhatsApp and TikTok also enjoyed substantial popularity. Notably, Kenyans lead globally in daily social media engagement, averaging nearly four hours per day. These statistics underscore the dynamic nature of Kenya’s youth, highlighting their educational advancements, employment challenges, and significant digital presence and this is why the Kenya youth should be at the forefront of financial literacy in regards to savings, investments and economic development of every sector of the economy and hence why my focus is on savings as the condiment that gives birth and the beautiful taste of investments.
The principles of wealth are true regarding large amounts and small amounts. It all begins with the smallest unit of currency, and given the economic status of a country like Kenya, where jobs are rare and unemployment is high, the best way to raise funds for investments and other needs is to focus on the essence of savings. This requires patience, self-discipline, self-control, consistency, and determination. Time is a warrior for the youth. If wielded well, the youth can create savings that would critically alter how they define investments in the country and beyond. Youth is the greatest advantage in a war that requires patience, determination, and courage. Youth is blind to fear; hence why most youth are courageous because they have yet to learn what failure and heartache are all about.
I am a big proponent of savings because, majority of us come from backgrounds where we have nothing and our social networks are not endowed with resources as we would like to take advantage of. Hence why I believe that savings are very key and are a necessary condiment in one’s journey to wealth creation.
Youth savings in Kenya face several challenges, including lower account ownership and usage compared to adults. According to a report by the German Sparkassenstiftung Eastern Africa, youth are 33% less likely to have a savings account than adults and 44% less likely to save in a formal institution.
A study focusing on the Kenya Post Office Savings Bank (KPOSB) revealed that out of 80,000 youth savings accounts, 75% were inactive or dormant, with many not receiving deposits beyond the initial one. Despite these challenges, some Kenyan youth are actively saving. A survey reported that 34% of Kenyan youth save frequently, and 73% save at least occasionally.
However, the overall savings rate among Kenyan youth remains low, with only 12% of youth actively saving. This is why I am very passionate about youth and money because they have an advantage no one else has, and that is age and ignorance. Ignorance is good because it makes them take risks without the conscience of experience holding them back.
This is why saving is the foremost financial education the youth need, and this is why NSSF Kenya is the foremost critical institution that every youth must be acquainted with as they have the right saving platforms that the youth can take advantage of.
In Kenya, 60% of the population is under 25, and the financial preparedness of our youth is very crucial for the country’s economic future. Alarmingly, only 26% of the labor force is actively saving for retirement, leaving approximately 13.9 million workers without any form of pension savings, predominantly in the informal sector.
This lack of financial foresight is compounded by low financial literacy, leading to poor financial decisions and early withdrawals that erode retirement savings, David Koross, The Managing Trustee of NSSF, Kenya, emphasizes the critical role of young people in the savings journey, stating that, “Africa’s young population is its greatest treasure, that what we do in Africa this century, in regards to savings, pensions and investments, will determine where the world goes”. He further stresses that to harness this potential, it’s imperative to implement targeted financial literacy programs, incentivize pension contributions, and leverage mobile technology to facilitate savings among the youth. Without such interventions, the continent risks a future where its demographic dividend becomes a demographic burden. This is something that I agree with and echo because it speaks at the heart of what the youth need to ensure that they have a better future.
I deeply believe that regularly saving money is a skill and a system. Where the youth develop the skill through financial literacy and NSSF provides the right platform system for them to save and secure their future.
I believe, without a shred of doubt, that not doing enough by the relevant stakeholders can lead to a massive loss of opportunity for the youth, and that is why I am very keen on pushing for financial literacy opportunities by institutions like NSSF, Kenya.
The youth needs to know that it’s not how much they make each month that matters but that it’s how much they save along the way with the flexibility and time outside work that they have. I need to reiterate to the Kenyan youth that to truly keep money in their savings, especially with NSSF, they must believe deep in their subconscious that they are worthy of holding onto it and that NSSF will be the better partner on their journey as they grow old.
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Through my own experience, I have come to learn that the law of compounding effect is one of the most powerful things if you use it in your favor. Saving with NSSF allows one to put the law of compounding effect into use as one saves with them every month. Compounding is mankind’s greatest invention because it allows for the reliable, systematic accumulation of wealth through NSSF, which is the right institution to secure one’s future with.
Savings is the prerequisite of investment. It is the condiment that few know how to use to their advantage. Effective saving can lead to a successful wealth achievement. It is essential to note that saving entails sacrifice, self-discipline, consistency, and above all, patience, and that’s why it brings rewards. Those that save always have. If tomorrow you face a problem, say you lose your job or your business, you know you can survive until the situation improves or you start another business, this time with firm foundations. However, those that do not save have no way to recalibrate their lives for better after a storm.
The role of saving with NSSF is to give you the peace of mind to focus on today’s issues since NSSF is taking care of your future issues. This is something very few people can understand or grasp. Everything is in excess except money, thereof, it should be well managed and this is why the youth need to learn how best to manage and grow their money, one coin at a time and why NSSF is the best preferred retirement option in the Kenyan market.
The youth must know that financial freedom can only be achieved by a conscious choice. It’s not an accident. It’s not just merely by thinking, it’s through grinding and doing what is necessary to get that coin to save with NSSF. Saving money with a bank isn’t the same as saving with NSSF. The bank account does not secure your future and your retirement, but saving with NSSF does.
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