Africa-Press – Kenya. Unveiling the Kenya National Financial Inclusion Strategy (2025–2028), a key milestone in advancing inclusive finance for all.
Kenya has recorded a troubling decline in financial health, that has seen many locals sink into high debt levels debt levels despite a sharp rise in inclusion.
Fresh National Treasury and Central Bank of Kenya data shows that financial inclusion grew from 26.7 per cent in 2016 to 84.8 per cent in 2024, driven by rapid digitalisation and product expansion.
However, the proportion of Kenyans who are financially healthy and able to meet expenses, absorb shocks and plan for the future fell from 39.6 per cent to 18.3 per cent over the same period.
In an effort to counter the trend Kenya has launched a new four-year National Financial Inclusion Strategy (NFIS) aimed at expanding equitable access to quality financial services.
Central Bank governor Kamau Thugge said the new strategy is an urgent response to structural weaknesses that are dragging millions into financial vulnerability.
“Over-indebtedness, gambling and weak consumer protection undermine financial health, especially among youth and low-income households,” Thugge said.
The inclusion boom was fuelled primarily by mobile money, which now reaches 82.3 per cent of adults, and the rise of digital credit, agency banking, fintech partnerships and contactless payments.
The strategy says digital lending has made it easier to access quick credit, often at high cost, and driven consumption borrowing rather than investment.
Many borrowers juggle multiple short-term loans, lack repayment capacity and fall into cycles of default, blacklisting and financial exclusion.
Gambling, facilitated by instant mobile payments, has deepened the crisis among young people, contributing to household fragility and unpredictable cash flows.
The NFIS reveals that while more Kenyans can access money, they are not using financial services effectively enough to improve their lives.
According to the National Treasury Cabinet Secretary John Mbadi, the NFIS 2025–2028 seeks to address these gaps through a multi-stakeholder, data-driven and innovation-led approach, bringing together regulators, financial institutions, private sector innovators and development partners.
“Only 36 per cent save through formal channels, and insurance usage remains low at 22 per cent. Many users rely heavily on mobile transfers, with limited uptake of savings, pensions, insurance or investment products designed to build resilience,” said Mbadi.
“Among the plans we have is to increase the levels of savings from the current.”
Treasury Principal Secretary Chris Kiptoo said that The NFIS will roll out large-scale financial literacy programs to equip households with skills to budget, manage credit, save, insure and invest.
“Kenya’s new strategy is one of the first in Africa to explicitly make financial health, not access—the core outcome of inclusion policy. It attempts to shift the narrative from transactional access to meaningful usage, affordability, transparency and consumer empowerment,” said Kiptoo.
The strategy warns that success will depend on strong commitment and coordination between public and private sectors, backed by policy reforms, regulatory capacity, digital infrastructure, reliable data systems and comprehensive financial education.
It also underscores the need for “robust supervisory capacity” to ensure sustainability and protect consumers in a rapidly expanding digital financial marketplace.
Kenya has long been regarded as a global pioneer in financial inclusion, but the NFIS suggests that the country must now shift focus from expanding access to improving quality, resilience and outcomes.
As financial health deteriorates amid rising debt and economic shocks, policymakers hope the new strategy can help rebuild confidence and steer innovation toward more inclusive and sustainable growth.
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