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 per cent of them would be interested in taking joint financial advisory and planning sessions with their spouses.
Even though 60 per cent of the respondents have adequate knowledge to make investment decisions and constantly consume financial knowledge material, the report revealed that only 12 per cent have an entrenched saving culture, putting aside only six to 15 per cent 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.
Speaking during the event, the Enwealth CEO, Simon Wafubwa said :" “83 per cent of those who do not save attribute it to recurring expenses and inadequate disposable income."
About 84 per cent of the working population regularly send money to their extended family for daily upkeep such as food, transport and medical expenses, he added.
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.
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,"Strathmore University Lecturer Naomi Mwangi said.
"We know there is intention to want to save but our people face challenges in actualiSing the behavior. We need to teach them about detrimental behaviors such as quick loans, budgeting and more,” she said.
"And the education shouldn’t stop at that. When they get married, financial management needs to be given priority in marriage counselling sessions,” added Mwangi.
Enwealth Financial Services is a customer centric financial services firm that provides innovative solutions in social security financial services, with over Sh85billion of pension assets under administration and consulting in Kenya , Mauritius and Uganda.
Currently, the pensions firm with about 60 professionals staff provides products and services that include pension schemes administration, trustees training, retirement benefits consulting, retirement planning training, as well as retirement consulting services.
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