More women than men in Kenya are sacrificing food to help pay debts as financial distress deepens, the 2024 FinAccess Household survey shows.

Survey revelations come at a time when the percentage of people defaulting on their loans has increased to 16.6 percent this year from a lower 10.7 percent reported in 2021.

"The most popular action to repay is by reducing expenses on food with females surpassing males by recording 63.0 percent and 57.1 percent respectively," the study stated in part.

Other initiatives employed by Kenyans in financial distress to survive the economic climate marked by thinning incomes and higher taxation measures were saving less and scouting for new income streams such as work or doing business. Some Kenyans reported taking another loan to repay old debt, the study shows. 

In the 12 months under review, however, the percentage of those who paid late or missed a payment reduced to 37.2 percent in 2024 from 45.8 percent reported in 2021. 

In addition, the percentage of those who did not have any form of default increased from 42.6 in 2021 to 45.9 in 2024.

The least sought action to pay is by selling or giving assets and belongings, which saw females record 20.7 percent and males 23.1 percent. Males are more willing to part with their assets and belongings as compared to females.

Meanwhile, data shows that while the percentage of Kenyans turning to the use of credit increased to 64.0 percent, the population of savers dipped to 68.1 percent for the first time since 2009, signaling that a majority of people feel strained to save for a rainy day. 

Regarding money loss, respondents cited various incidences of internal fraud experienced in SACCOs and pension schemes claiming the top spot at 75.1 percent and 66.1 percent, respectively. 

Even with advancements in technology to safeguard transactions in mobile money services, accidental sending of money was still prevalent in the country, accounting for about 70.0 percent of incidences. 

Highlights of the 2024 FinAccess Household Survey:-

1. Financial Exclusion: 9.9 percent of Kenyan adults remain financially excluded, with rural youth forming nearly half of this group (45.5 percent). Key barriers to exclusion include lack of mobile phone (64.1 percent) and lack of Identity Card (51.5 percent).
2. Providers:  Uptake of traditional bank accounts and SACCOs has increased but digital services recorded mixed results. Mobile money, mobile bank, and Fuliza moderated in growth; while digital MFIs, including ‘buy now pay later’ have recorded increased uptake following the regulation of DCPs.
3. Financial Inclusion in counties: While Kiambu, Nairobi, Kirinyaga, Nyeri, Isiolo, and Mandera are the most included counties, Turkana, West Pokot, Elgeyo Marakwet, Trans-Nzoia, Migori, and Narok are the most excluded. 
4. Insurance, Pensions, and Securities: The use of NHIF has declined, possibly due to the ongoing transition to SHIF; NSSF usage has slightly increased due to the lifting of the NSSF Act (2013) while the use of securities has also increased with the introduction of apps.
5. Consumer Protection: System downtime is a major issue faced by consumers; users of MFIs and digital apps also suffer from unethical practices and hidden charges. Up to 9.8 percent of mobile money users reported losing money.
6. Hustler Fund: The government’s Financial Inclusion (Hustler) Fund has seen rapid uptake, with 28 percent of the population borrowing from the Fund. The Hustler Fund is more popular in urban areas with higher-income populations, who are formally or informally employed.

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