Why Kenyans are no longer saving in banks

By JULIE OWINO, NAIROBI, Kenya, Aug 20 – Lack of cash to save and the shortage of normal profits are the main reasons why the percentage of Kenyans saving in banks is declining.

According to the Financial Sector Deepening (FSD) survey, 35 percent of Kenyans do not store in banks due to loss of finances, even as 15.5 percent of people lack an ordinary profit to have interaction in saving.

“Of the twenty-two (22) reasons surveyed for non-use of a bank account, eight (eight) reasons emerged top with a complete response charge of 88.Three percent. Lack of money to save, lack of ability to keep an account and lack of ordinary profits had been the top 3 reasons referred to, in general, accounting for 70 percentage of reaction fee,” study the survey.

Other reasons consist of the long distance to the nearest bank, lack trust, financial literacy obstacles, amongst others, although now not tremendous.

This is at the same time as mobile banking account utilization multiplied by using eight percent in 2019, at the same time as the usage of conventional bank money owed declined via an average of 2.1 percentage all through the same length.

The rapid adoption of mobile banking money owed usage turned into extra among the male/city customers at eight percentage boom rate, even though adoption many of the lady/city mobile banking accounts utilization become simply 1 percent factor under, at 7 percent growth price.

This may also reflect the closure of financial institution branches with the aid of some banks and rapid uptake of technological solutions by young people.

“There are two foremost demanding situations clients stated within the use of a financial institution account which consists of Automated Teller Machine (ATM) or card device now not working and being levied with sudden fees,” reads the survey.

The ATM/ card device no longer working changed into more reported in the city areas and a few of the girl customers whilst the unexpected fees had been extra stated with the aid of male and rural customers.

The file comes at the backdrop of expanded conventional money owed declined from 31.7 percentage in 2016 to 29.6 percent in 2019, cell banking debts usage accelerated to twenty-five.3 percent in 2019 from 17.Five percentage in 2016.

It similarly indicates that Growth in mobile banking account usage is specifically driven via younger people beneath the age of 35 years.