Resilient but Strained: More Kenyans Save While Borrowing Habits Decline in Tight Economy

Kenyans are starting to save more, driven primarily by the need for financial security and the ability to attend to emergencies as the economy tightens. According to Tala’s 2026 MoneyMarch Report on the state of the economy, 59% of those surveyed, a 3-percentage point increase from 56% last year, said that they are saving in their bank accounts and chamas.

Although the rising cost of living and doing business remains the dominant concern, with one in five Kenyans reporting that their cost of living has increased by more than 20% in the past six months, business ownership is on the rise, increasing by 8 percentage points from 2025. This signals that Kenyans remain resilient. At the same time, the percentage of salaried workers engaging in side-hustles has declined, signaling growing financial constraints in diversifying income streams.

Speaking to the financial ecosystem and media during the launch of the report, Annstella Mumbi, General Manager at Tala Kenya, emphasized the importance of collaboration, stating: “From these findings, I am convinced that together we can build a financial ecosystem that supports ambition, encourages responsible borrowing, and ensures that entrepreneurs have the tools they need not only to survive today but also build a better tomorrow”.

In her keynote address, Airtel Money’s Managing Director, Anne Kinuthia-Otieno, who was the Chief Guest, began by acknowledging that mobile money has redefined how we think about cash and connectivity. “The spirit of resilience runs through every digital transaction from market traders in Gikomba to startups in Westlands. It gives us the confidence to thrive in a rapidly changing world”. Said Mrs. Otieno.

“At Airtel Money, we remain committed to being a partner in this journey, ensuring that the wheels of our economy keep turning, safely and inclusively,” She concluded.

Despite digital lenders now becoming the first stop during financial emergencies, ranking ahead of informal networks such as family support or chama payouts, with 91% of consumers borrowing from DCPs (up from 87% last year), borrowing habits are declining. People are borrowing less frequently and taking smaller loan amounts.

When loans are taken, they are largely used to cover business costs, school fees and everyday living expenses.

Borrowing for medical expenses has increased significantly, with 26% percent of consumers reporting that they borrowed to settle a medical bill for themselves, a friend, or a family member in the last six months, compared to 17% last year.

This marks the sixth installment of Tala’s annual MoneyMarch campaign, which aims  to empower everyday Kenyans with the education, tools, and financial resources needed to unleash their economic potential, reduce poverty, and strengthen the broader economy.

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