The 2021 FinAcces Household Survey
The number of Kenyans taking loans from financial institutions has risen by 10 percent since 2019 reaching about 14.4 million, occasioned by a slight improvement in financial literacy. But while most of these adults applied for loans and could calculate the interest charged, the decisions to apply were also fuelled by survival, making credit their source of livelihood. The findings were contained in a report titled The 2021 FinAcces Household Survey, compiled by the Kenya National Bureau of Statistics and the Central Bank of Kenya, covering 2020 and 2021. It revealed that savings improved by only 4 percent, mostly because the Covid-19 pandemic also cut sources of income. But the fact that borrowing exceeded savings also means banks must do better to encourage saving. The survey used the knowledge of the cost of borrowing as a measure of financial literacy.
