The fourth edition of the Economic Empowerment Conference Abojani Investment attracted over 300 participants who were tipped on cultivating a culture of saving to secure the future and support family stability
Abojani Investment, CEO, Robert Ochieng, highlighted the success of the Kshs 1 Million Challenge launched in 2023, where 200 out of 800 members achieved their goal of saving one million shillings within the year.
He urged the financial sector to find better ways to reach Kenya’s informal workers, noting that only three million Kenyans are employed in the formal sector.
“There are innovations in the financial sector designed to help informal businesses grow and manage their finances better. With the right policies and collaboration among players including the government, we can tap into this untapped market and encourage saving, even through incentives like tax breaks,” Ochieng said.
However, he warns that rising tax burden could reduce disposable income, making it harder for people to save.
“Without efforts to bring in savings from the informal sector, we’ll continue to see low savings rates in Kenya, which are already lower than in many other African countries,” Ochieng said.
Karen Hospital, Founder and Chief Cardiologist, Dr. Dan Gikonyo, highlighted the need to create the right environment to promote saving and investment, especially for young people, to help cushion society against economic challenges. He also stressed the importance of insurance in protecting savings and preparing for emergencies.
“There is no perfect time to start saving—if you’re thinking about it, start now. As a doctor, I’ve seen the struggles older people face later in life. We need to build a savings culture and ensure safeguards like a strong public insurance system so that savings can be directed toward investments, not crises,” said Dr. Gikonyo.
ICEA Lion Trust company, CEO and Principal officer, Peter Wachira, termed financial literacy as an important step towards financial freedom and securing the future while still young.
He said many Kenyans continue to lavish in poverty after retirement despite having disposable income during their youth hence the need for innovative products from players in the financial sector to secure more uptake in long term investment schemes.
“Unless the industry is able to attract monies from Kenyans especially in the Jua Kali sector we will continue to witness depressed saving which remains low even compared to other countries,” said Wachira.
According to statistics, Kenya’s gross savings rate in December 2023 was 11.9%, which is below the African average of 17%, while the gross domestic savings as a percentage of GDP stood at 11.35%.
