Nairobi — Abojani Investment CEO Robert Ochieng has called on Kenyans, especially the youth and small business owners, to prioritize savings and investment as a foundation for financial stability.
Speaking at the firm's 4th Economic Empowerment Conference on Saturday, Ochieng highlighted the success of Abojani's initiatives and outlined new opportunities for individuals and SMEs to achieve financial growth.
The conference, themed "Building Staying Power for African Households and Businesses," brought together over 300 participants to discuss the importance of saving and investing.
Ochieng emphasized that while saving one million Kenyan shillings is a milestone, it is just the beginning of a financial journey.
"A million Kenyan shillings may only generate Ksh 10,000 in passive income per month--it's just the start. The goal is to achieve that first step and then keep growing," he said.
Ochieng also unveiled the 100 Million Challenge, a new initiative aimed at helping SMEs build significant financial portfolios over one to 15 years, based on their capabilities.
Ochieng underscored the need to extend financial services to Kenya's informal workers, who make up the majority of the workforce.
Noting that only three million Kenyans are employed in the formal sector, he urged the financial sector to adopt innovative solutions and collaborate with the government to create incentives such as tax breaks for savers.
"There are innovations in the financial sector designed to help informal businesses grow and manage their finances better," he said.
"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."
Financial literacy
Keynote Speaker Dr. Dan Gikonyo, Founder and Chief Cardiologist at Karen Hospital, echoed Ochieng's sentiments, stressing the urgency of building a savings culture among young people.
"There is no perfect time to start saving--if you're thinking about it, start now," said Dr. Gikonyo.
He also emphasized the importance of strong public insurance systems to protect savings from being wiped out by emergencies, enabling people to focus on investments.
Peter Wachira, CEO of ICEA Lion Trust Company, highlighted the critical role of financial literacy in promoting long-term savings and investment.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He noted that many Kenyans face financial insecurity in retirement despite having had disposable income in their youth.
"Unless the industry can attract savings from Kenyans, especially in the jua kali sector, we will continue to witness depressed savings rates, which remain low compared to other countries," Wachira said.
Kenya's gross savings rate stood at 11.9% in December 2023, below the African average of 17%. According to a survey by lending firm Tala, one-third of Kenyans would exhaust their savings within a month if faced with financial hardship, while only 17% could sustain themselves for more than six months.
Through initiatives like the 1 Million Challenge, which helped 200 participants save one million shillings last year, and the new 100 Million Challenge for SMEs, Abojani is working to instill a culture of saving and investing across Kenya.
"A savings culture is about more than just securing the future--it's about creating a buffer for life's uncertainties and paving the way for financial freedom," Ochieng concluded.
