FRED WASWA: Kenyans need savings cushion to survive income shocks

Founder and the Group Chief Executive Officer of Octagon Africa Financial Services Fred Waswa /HANDOUT Kenya has made significant progress in expanding access to financial services, but having access to an account or financial product does not necessarily mean a household is financially secure.

The more important question is whether a household can withstand a sudden loss of income, such as missing two consecutive salaries, without being forced to borrow, delay essential payments or sell assets. This is a more useful measure of financial resilience than simply looking at balances held in bank accounts.

Kenyans save through a wide range of channels, including banks, mobile wallets, Saccos, chamas, money market funds and pension schemes.

Therefore, bank account balances alone do not provide a complete picture of household savings.