Financial health is an integral part of a resilient and inclusive financial ecosystem. It plays a critical role in fostering a dignified society — a shared aspiration across communities and nations.
A financially healthy population is better equipped to make informed, sustainable decisions that align limited resources with prevailing economic realities, ensuring those resources are directed where they are needed most.
Encouraging individuals, businesses, and governments to pursue financial health lays the foundation for long-term stability and resilience.
At its core, financial health means having the capacity to meet regular and unexpected obligations, maintain a safety buffer for disruptions, invest in future needs — such as retirement, infrastructure, or business growth — and retain enough flexibility to support innovation and overall well-being.
True financial health is not merely about surviving, but about thriving with confidence, sustainability, and purpose.
Kenya’s economy has expanded significantly over the years, underpinned by three key sectors: services, agriculture, and industry. This transformation has seen the country move from a third-world economy at independence to a lower-middle-income economy today.
According to the World Bank, Kenya is now the largest economy in Eastern and Central Africa.
However, this growth has not been without challenges. Chief among them is the rising burden of public debt.
As of June 2024, debt servicing costs stood at an alarming 70 percent of GDP — well above the International Monetary Fund threshold of 50 percent for developing economies. This level of debt stress threatens to crowd out critical investments in infrastructure, social services, and economic development.
In parallel, Kenya’s financial sector has witnessed rapid innovation and diversification. While this has expanded access to financial products, it has also led to the proliferation of predatory digital lending apps, addictive betting platforms, and inconsistent loan pricing models — all of which hinder access to affordable, responsible capital.
The 2024 FinAccess Household Survey offers a sobering snapshot: only 18.3 percent of Kenyans were deemed financially healthy — a marginal improvement from 17.1 percent in 2021. While more Kenyans are managing day-to-day expenses and coping with financial shocks, fewer are able to invest in the future.
In response, government initiatives such as the Bottom-Up Economic Transformation Agenda and Vision 2030 are making notable strides.
These programmes aim to strengthen financial inclusion, particularly in the informal sector, by providing capital that supports small enterprises and underserved populations.
They are designed to promote access to affordable, timely, and flexible financial solutions — essential tools for building household and business resilience, and unlocking new economic frontiers.
Ultimately, the push for widespread financial health aligns with the aspirations of citizens, businesses, and policymakers alike. It is vital to ensuring that debt burdens do not derail development goals, and that economic growth translates into improved livelihoods, inclusive prosperity, and a dignified life for all Kenyans.
ICIFA has scheduled a conference with theme “Financial Health Solutions for All” scheduled for 7th to 9th May 2025, at Prideinn Paradise Mombasa.
The writer is Senior Training and Research Officer, ICIFA
