Nairobi — Abojani Investment, a leading financial and investment advisory firm, has made a compelling case for building a strong savings culture, particularly among young people, as it hosted its 4th Economic Empowerment Conference under the theme, "Building Staying Power for African Households and Businesses."
The event, which drew over 300 participants, emphasized the importance of saving and investing to secure a stable future for households and businesses alike.
Dr. Dan Gikonyo, Founder and Chief Cardiologist at Karen Hospital, delivered the keynote address, urging young people to embrace saving as a foundation for financial stability.
He highlighted the need to create an environment conducive to saving, particularly through innovative financial products and public insurance systems.
"There is no perfect time to start saving--if you're thinking about it, start now," said Dr. Gikonyo, adding: "A culture of saving is not just about securing the future--it's about safeguarding the present and preparing for the unexpected."
"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."
Abojani's CEO, Robert Ochieng, underscored the success of initiatives like the 1 Million Challenge, launched in 2023, where 200 participants achieved the ambitious goal of saving one million shillings in a year.
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Building on this success, the firm unveiled the 100 Million Challenge, designed to help SMEs grow their financial portfolios over a timeline of one to 15 years, based on their capacity.
"A million Kenyan shillings may only generate Ksh 10,000 in passive income monthly--it's just the beginning. The journey doesn't stop there," said Ochieng, encouraging both individuals and businesses to aim higher.
Despite these efforts, challenges persist. Ochieng warned that Kenya's rising tax burden reduces disposable income, making it difficult for people to save. Additionally, the country's gross savings rate remains at 11.9%, well below the African average of 17 per cent.
Peter Wachira, CEO of ICEA Lion Trust Company, highlighted the need for targeted financial literacy campaigns to engage Kenya's informal sector workers, commonly referred to as the jua kali sector.
"Without innovative products to attract savings from this demographic, we will continue to see depressed savings rates," he said.
Both Ochieng and Wachira stressed the need for government and private sector collaboration to create incentives such as tax breaks and accessible financial tools to encourage saving.
"The financial sector must focus on empowering informal businesses and households to save and invest. With the right tools, this untapped potential can significantly boost Kenya's economy," added Ochieng.
Through initiatives like financial literacy training, investment planning, and the 100 Million Challenge, Abojani aims to guide Kenyan businesses and individuals toward long-term financial success.
