More than 50 percent of Kenyans are only working for food, a newly released report shows.
The 2019 Finances Household Survey released on Wednesday by the Central Bank of Kenya (CBK) and the Financial Sector Deepening (FSD) shows that 51 percent of Kenyans are living from hand to mouth.
The latest findings represent an increase by more than 15 percent from 34.3 percent in earlier years
The survey found out that the cost of living in the country continues to rise, triggering a hand-to-mouth means of survival.
The sad state of affairs is despite access to formal financial services and products growing from 41.3 percent in 2006 to 82.9 percent in 2019.
The CBK’s interim director of research links the worsening financial health of Kenyans to poor microeconomics, especially a drop in agricultural productivity as a result of bad climate.
Kenyans continue to take a beating from a poor climatic condition that continues to take the toll on food production. This stretched inflation during the period under review, forcing households to spend more on basic needs.
The study sampled 8,669 households countrywide, 40 percent in urban areas and 60 percent from the rural setting.
It provides new information on the quality and impact dimensions, examining financial health and livelihoods, consumer protection, financial literacy in addition to probing more deeply on the frequency of usage.
It also includes independent business and agriculture modules to better understand usage of financial products and services within these livelihoods, crucial for the development of an all-inclusive financial ecosystem for all Kenyans.