Kenyan couples in better financial position, but report black tax burden, Enwealth survey shows

Over 83% of Kenyan couples have indicated that being in a relationship has had a positive impact on their financial position. This is according to a survey done by pension administrator Enwealth Financial Services dubbed “The saving and investments behavior among Kenyans”.

The research which was done in partnership with Strathmore University and the Institute of Human Resource Management (IHRM) further revealed that 96% of them would be interested in taking joint financial advisory and planning sessions with their spouses.

Even though 60% of the respondents have adequate knowledge to make investment decisions and constantly consume financial knowledge material, the report revealed that only 12% have an entrenched saving culture putting aside only 6% -15% of their monthly income. One of the main reasons for the savings being for big ticket purchases such as a car or big project. The most common saving channels were SACCOs and pension schemes.

The findings come after the recent concerns over the increasing rate of single parenthood in the country indicating a strain on finances for single parents in the country.

Speaking during the event, the Enwealth CEO, Simon Wafubwa commented, “83% of those who do not save attribute it to recurring expenses and inadequate disposable income while 84% of the working population regularly send money to their extended family for daily upkeep such as food, transport and medical expenses. “

In response to this market opportunities , Enwealth shall be rolling out innovative technology driven financial products that are based on individuals behavioral attributes and age based financial priorities…. Added Mr. Wafubwa

The research report has further recommended to the government policy agencies for enhanced higher tax reliefs  especially to the informal sector as an incentive to boost the savings culture ”.

“Education institutions should introduce mandatory financial management courses in the curriculum. It is the only way to realize financial literacy among the population as soon as they get their first paycheck. We know there is intention to want to save but our people face challenges in actualizing the behavior. We need to teach them about detrimental behaviors such as quick loans, budgeting and more,” said Naomi Mwangi. “And the education shouldn’t stop at that. When they get married, financial management needs to be given priority in marriage counselling sessions,” added the Strathmore University Lecturer.

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