- Abojani Investment is a Kenyan financial and investment advisory firm
- Abojani hosted over 300 participants in its 4th annual conference themed “Building Staying Power for African Households and Businesses.”
- The firm saw over 200 out of its 800 members achieve the Ksh 1 million target saved during the 2023 Save 1 Million Challenge
According to statistics, Kenya’s gross savings rate in December 2023 was 11.9%, the same as in 2022. The household savings rate was 12%, below the African average of 17%, while the gross domestic savings as a percentage of GDP stood at 11.35%.
Kenya’s gross savings rate is below 12%
Another survey by lending firm Tala indicated that one third of Kenyans would exhaust their savings within a month if worst came to worst while only 17 percent would survive with their savings beyond six months.
Peter Wachira the CEO and Principal officer at ICEA Lion Trust company, speaking at the 4th Economic Empowerment Conference held by Abojani Investments, a Kenyan financial literacy firm, said financial literacy is an important step towards financial freedom and securing the future while still young.
Kenyans lavish in poverty after retirement
Wachira lamented that many Kenyans continue to lavish in poverty after retirement despite having disposable income during their youth hence the need for innovative products from players in the financial sector to secure more uptake in long term investment schemes.
“Unless the industry is able to attract monies from Kenyans especially in the Jua Kali sector we will continue to witness depressed saving which remains low even compared to other countries.”
Abojani Investment, a Kenyan financial and investment advisory firm, hosted over 300 participants in its 4th annual conference focused on encouraging a culture of saving to secure the future and support family stability. The conference was themed “Building Staying Power for African Households and Businesses.”
Abojani has built a great following in the country in its efforts to help Kenyans save and invest. Last year, the firm launched the 1 Million Challenge which saw 200 out of 800 members save one million shillings within the year. Abojani urged the financial sector to find better ways to reach Kenya’s informal workers, noting that only three million Kenyans are employed in the formal sector.
“There are innovations in the financial sector designed to help informal businesses grow and manage their finances better. With the right policies and collaboration among players including the government, we can tap into this untapped market and encourage saving, even through incentives like tax breaks,” said Robert Ochieng, CEO of Abojani Investment.
The rising tax burden could reduce disposable income
However, Ochieng warned that rising tax burden could reduce disposable income, making it harder for people to save. “Without efforts to bring in savings from the informal sector, we’ll continue to see low savings rates in Kenya, which are already lower than in many other African countries,” he added.
Dr. Dan Gikonyo, Founder and Chief Cardiologist at Karen Hospital the keynote speaker also agreed to the need to create the right environment to promote saving and investment, especially for young people.
“There is no perfect time to start saving—if you’re thinking about it, start now. As a doctor, I’ve seen the struggles older people face later in life. We need to build a savings culture and ensure safeguards like a strong public insurance system so that savings can be directed toward investments, not crises,” said Dr. Gikonyo.
There is no perfect time to start saving
The youth need to be trained on savings and investments to help cushion society against economic challenges. Gikonyo also stressed the importance of insurance in protecting savings and preparing for emergencies.