Everyone faces financial difficulties at some point, and Kenyan youth are no exception. Challenges such as unemployment, low income, managing student loans, mobile loans, gambling, and a lack of sufficient savings to invest or start businesses are common.
However, solutions exist for most of these problems. Here are some of Kenyan youth's financial challenges and tips on overcoming them.
1. Unemployment
Every year, around 500,000 young Kenyans graduate from tertiary institutions ready to join the workforce. Unfortunately, due to slow economic growth, corruption, nepotism, and a skills mismatch in the job market, nearly 75% of them remain unemployed. A 2017 study funded by the British Council found that it takes an average Kenyan graduate five years to secure a job.
How to Overcome It:
How to Overcome It:
Think outside the box. Consider developing a side hustle or alternative income streams based on your skills. If you’re still in college, seek internships, and entrepreneurial opportunities, or learn new skills to increase your chances of employment post-graduation.
2. Low Income
Data from the Kenya National Bureau of Statistics (KNBS) shows that nearly half of Kenyans earn below Ksh30,000 per month. This can make it hard for young people to meet basic needs like food and housing, especially at the start of their careers.
How to Overcome It:
Prioritize your basic needs and allocate a significant portion of your earnings to cover them. If your income is insufficient, consider finding freelance work or side jobs. Also, cut back on unnecessary expenses like dining out frequently and ensure you have a solid budget in place.
3. Student Loans and Mobile Loans
With the rising demand for higher education, student loans have become a necessary burden for many young Kenyans. Additionally, mobile loans have created financial strain for those struggling to pay off their debts due to unemployment or low wages.
How to Overcome It:
Avoid taking on new loans unless you're sure you can handle the repayments. Reach out to student loan providers to discuss flexible repayment options. For mobile loans, try to clear existing debt before accumulating more.
4. Job Loss
Losing a job is a reality for many, and Kenyan youth often lack the financial cushion to handle unemployment. Studies show that many people are “liquid asset poor,” meaning they don't have enough savings to cover expenses for three months or more in case of job loss.
How to Overcome It:
Start building an emergency fund to cover 3-6 months of living expenses. Additionally, continuously invest in professional development, attend networking events, and update your CV regularly. Consider generating multiple income streams through side businesses or investments to cushion yourself against potential job loss.
5. Supporting Parents Financially
Many young Kenyans face the pressure of providing financial support to their parents even when they are not financially stable themselves, a phenomenon often referred to as "black tax."
How to Overcome It:
Have an honest discussion with your parents about your financial capabilities. Set realistic expectations regarding how much you can contribute to their expenses, without jeopardizing your own financial well-being.
Final Thoughts
To navigate these financial challenges, Kenyan youth need to educate themselves on personal finance, actively manage loans, minimize debt, and explore investment opportunities. Progress is made one step at a time, so be patient. Lastly, avoid comparing yourself to others—it can lead to unnecessary stress and distraction from your personal goals.
By: Abraham Emaide Opili
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