Business ownership in Kenya surged by 7 percentage points in 2025, while full-time employment as the primary income source declined by 5 percentage points year-on-year. Tala’s MoneyMarch 2025 report highlights a shift in economic dynamics, driven by digital financial tools, evolving work trends, and a rising cost of living that limits investment in side hustles.
Digital Credit and Changing Borrowing Trends
With inflationary pressures persisting, over one-third of Kenyans have increased borrowing. This is primarily to cover business expenses, education, and daily living costs. Interestingly, 52% now prefer a single lender, whether a licensed Digital Credit Provider [DCP] or a bank. Indicating a growing trust in established financial institutions.
Speaking at the report’s release, Boniface Kamiti from the Competition Authority of Kenya emphasized the critical role of digital credit providers in financial literacy:
“You are not just lenders; you are partners in financial well-being. Educating borrowers on responsible credit use is key to sustainable financial health.”
This call to action shows the growing need for AI-driven financial education tools, helping users optimize borrowing and repayment strategies.
Investment and Digital Wealth Growth
Despite financial pressures, Kenyan optimism remains high, with 46% feeling positive about their financial future. Many are prioritizing business and home ownership as long-term goals, with 11-20% of income directed towards investments in digital savings platforms, SACCOs, and chamas.
However, trust issues remain. A significant portion of respondents cite fear of loss and lack of transparency in investment platforms as key barriers to higher savings and investment. This presents a growth opportunity for fintech startups leveraging blockchain and AI to create secure, transparent, and automated investment solutions.
The Future of Financial Inclusion
Tala’s MoneyMarch initiative continues its mission to empower Kenyans with digital tools, financial education, and access to credit. Annstella Mumbi, General Manager of Tala-Kenya, reinforced this vision:
“Financial empowerment is not just for a privileged few—it’s a right for everyone, whether you’re a student, entrepreneur, or looking for a fresh start.”
As fintech innovation accelerates, digital lending platforms must not only expand access to credit but also enhance financial literacy and trust. With AI, blockchain, and digital credit ecosystems evolving, Kenya’s financial future is increasingly digital, inclusive, and resilient.
