Businesses become backbone of economy as full-time employment declines

NAIROBI, Kenya, Mar 13 – Business ownership increased by 7 percentage points (pp) in 2025, while full-time employment — as the main source of income — declined by 5 pp year-on-year.

According to Tala’s MoneyMarch 2025 report, Kenyans in both full-time and part-time employment have pursued fewer ventures that generate secondary income, as the rising cost of living reduces funds that would normally be invested in side hustles.

Compared to 2023 and 2024, the trend of high cost of living continues to be a running theme with 9 in 10 of Kenyans surveyed reporting financial challenges over the past six months — and 32% feeling stressed about their financial situations.

However, similarly to last year, the sentiment about financial wellbeing remains optimistic, Kenyans are resilient.

Approximately 46% of respondents said they feel positive about their financial futures this year.

“As we release these findings and launch MoneyMarch 2025, I want to emphasize that financial empowerment is not reserved for the privileged few; it is a right that belongs to all of us. Whether you are a student, an entrepreneur, a business owner, or someone looking for a fresh financial start, this campaign is for you,” Tala Kenya General Manager Annstella Mumbi said.

Slightly over one-third of Kenyans have increased their borrowing, a trend that aligns with rising living costs and delays in income.

Business expenses, education, and day-to-day living needs are the top three reasons for borrowing, with about 80% of borrowers confident in their ability to repay their loans.

Interestingly, 52% of Kenyans now prefer to stick with one lender for both licensed Digital Credit Providers (DCPs) and banks.

When asked about their future, respondents indicated that business and home ownership are their top financial goals for the next five years.

A significant number of respondents reported setting aside 11-20% of their income for investments, mainly in savings, SACCOs, and chamas.

Their investments are primarily driven by the desire to grow wealth, start or expand a business, and plan for retirement.

Of note, a fear of loss and a lack of trust in investment platforms were cited as challenges preventing Kenyans from saving and investing more.

This is the fifth installment of Tala’s annual MoneyMarch campaign, aimed at empowering everyday Kenyans with the education, tools, and finances needed to unleash their economic power, reduce poverty, and strengthen the broader economy.