Before we push people to save more, shouldn’t we first ensure they earn enough to live with dignity?
When President Ruto took office, one of his key economic visions was to see a Kenya where citizens save more allowing the government to rely more on local borrowing. His perspective was perhaps inspired by countries like China, where citizens save over 45% of their income. To push this agenda, the government introduced policy changes such as increased NSSF deductions, encouraging Kenyans to grow a stronger savings culture.
However, Kenya’s average savings rate currently stands at about 12%, well below the continental average of 17%. Vision 2030 had projected that we would be saving 30% of our income by now.
But this brings us to a critical question:
👉 Do Kenyans really have a savings problem, or is it simply an income problem?
According to KNBS, the average monthly income in Kenya is about KSh 20,000, while in Nairobi, it’s roughly KSh 66,000. Yet, the average rent for a one- to two-bedroom unit in “affordable” areas like Donholm, Kasarani, Ruiru, or Umoja ranges from KSh 20,000 to KSh 40,000.
That means rent alone can easily consume 60% or more of a typical Nairobian’s income before factoring in food, transport, healthcare, and other essentials.
In rural Kenya, rent may be lower or even nonexistent, but this advantage is offset by significantly lower incomes. So, whether urban or rural, many Kenyans find that their income barely covers their basic needs.
A report by King’s Developers (2025) estimates that a comfortable lifestyle in Nairobi costs between KSh 70,000–120,000+ per month for a single person. This implies that the “average” Nairobian is not living comfortably, let alone saving.
So perhaps the issue isn’t a “poor savings culture” but rather an income gap that leaves little to save after meeting necessities.