How harsh economy has pushed working Kenyans to side hustles

Working Kenyans are finding new ways to make money amid increasing economic pressures, with side hustles now the norm in efforts to make ends meet.

A new report released yesterday says 30 per cent of working Kenyans earned more in 2025 compared to the previous year, buoyed by alternative income streams.

Kenyans have also shown notable resilience and adaptability, with 47 per cent owning or co-owning a business, and many others pursuing side hustles.

The Financial Wellness Monitor by Old Mutual, which tracks the financial health of working Kenyans, also indicated that more Kenyans were satisfied by their financial situation.

The study, focusing on employed Kenyans aged 20 to 59 earning at least Sh12,000, finds that financial satisfaction has rebounded from its lower level in 2024.

The study found that 26 per cent of Kenyans in the study are juggling multiple jobs or doing part-time jobs, which is an increase from the 20 per cent reported in 2024.

25 per cent of polyjobbers say that the income from their side jobs is more than from their main job. 46 per cent of polyjobbers are in the Retail space, 12 per cent in Agriculture, 10 per cent in Hospitality, and 8 per cent in Business services and transport 8 per cent.

According to the survey, financial satisfaction rose from 5.2 out of 10 in 2024 to 5.9 in 2025, with 70 per cent of respondents expecting their financial situation to improve over the next six months on account of improved macro-environment.

This optimism was attributed to broader behavioural shifts, with 91 per cent of Kenyans now reporting that they have a savings goal.

Youth aged between 20 and 29 have expressed great optimism about their financial wellness, as more are creating additional income streams and expanding businesses. This optimism is despite the high cost of living that continues to constrain overall satisfaction.

The report shows that a sense of comfort with one’s financial position, prudent debt management, the ability to save, and improved business performance relative to the previous year can be attributed to the rebounded financial well-being.

More than half of (53 per cent) of Kenyan consumers have enough savings to last them for 3 months or more, and this has increased by 9 percentage points since 2024. The report, however, notes that 4 in 10 are vulnerable to running out of funds in less than 3 months, without an income.

The report by Old Mutual on financial wellness, however, shows that at least 44 per cent of the youth under study have expressed that they are financially stressed.

“We see a downward trend in financial stress levels. However, 4 in 10 working Kenyans still remain highly financially stressed,” Financial Wellness Monitor.

“44 per cent of Kenyans feel that financial stress is badly affecting their mental and physical health. This has decreased 3 per cent since 2024,” the report.

As Kenyans engineer their way into financial satisfaction, it is not without persistent financial strain.

The report highlights that rising living costs, mounting debt, and expanding financial responsibilities continue to weigh on households, with 40 per cent of Kenyans borrowing to meet everyday expenses.

More than half, 54 per cent, of respondents are carrying the same or higher debt than last year, and 46 per cent are regularly overspending their budgets.

According to Arthur Oginga, Old Mutual Group Chief Executive Officer, Kenyans are not waiting for the economy to improve.

“In the face of economic pressure, they are actively engineering their own recovery, adapting, innovating, and finding new ways to improve their financial position,” said Arthur Oginga.

“The 2025 report paints a picture of a nation in transition. Kenyans are resilient and entrepreneurial. But without stronger support in financial literacy, savings discipline, retirement planning, and protection, this progress risks remaining short-term,” Vuyokazi Mabude, Head of Knowledge & Insights at Old Mutual, said.

 The study also found that 46 per cent of working Kenyans are part of the sandwich generation, supporting children as well as adults. The financially supported adults mostly include parents (79 per cent) and siblings (49 per cent). Adult dependents have increased by 4 per cent in 2025.

“What we are seeing is a shift from passive financial behaviour to active financial intent. Kenyans are working harder and setting goals, but they need the right tools, advice, and protection to translate this resilience into long-term financial security,” said Dr Tabitha Njuguna, Strathmore University Business School, Faculty Member, during a panel session.

Those reporting financial dissatisfaction cited the high cost of living, incomes insufficient to meet expenses, difficulty in securing better-paying opportunities, and limited capital to expand their businesses.

The survey has shown that income security remains the main financial priority for Kenyans, followed by cutting expenses, ensuring investments are safe and low risk, being able to pay off debt, and building financial buffers or emergency funds.

“47 per cent of working Kenyans are constantly worried about losing their job or income)

In the report, 25 per cent of Kenyans have fallen behind on rent, up from 17 per cent the previous year. 40 per cent, up from 35 per cent of Kenyans who dipped into savings to make ends meet.

Further, 28 per cent of Kenyans fell behind in house bills in the reporting period.

“Working Kenyans are actively adjusting to rising costs, trading down to more affordable housing, switching to lower-cost brands, and revising mobile plans to manage expenses,” said Justina Vuku, Investment Analyst at Old Mutual Investment Group.

She adds “In some cases, households are also moving children to less expensive schools, reflecting the extent to which cost pressures are reshaping everyday financial decisions”.

The Monitor found that 40 per cent of the population has taken out a loan for day-to-day expenses, with mobile loans continuing to be the most widely used form of credit, followed by personal loans from Chamas.

Further, 20 per cent of working Kenyans have participated in betting activities, with 46 per cent of this group gambling 2 to 3 times a week or daily.

“Sports betting is skewed toward younger males and lower income segments, and another 4 in every 10 gamblers have found themselves in financial difficulty due to their gambling”.

Japheth Ogalloh, Managing Director, Old Mutual General Insurance Kenya, has echoed the need to shift from responding to loss to actively protecting progress.

“That means designing solutions that balance today’s financial pressures with future security, while making financial education and advisory services more accessible to every Kenyan,” said Japheth Ogalloh.

The latest results indicate that, while key financial challenges remain, working Kenyans are entering a phase of recovery after a difficult 2024/2025 period.

The report notes that there are still persistent vulnerabilities that challenge working Kenyans' financial wellness, such as high cost of living, leading them to take out debt mainly for everyday expenses, and limited financial preparedness.