Old Mutual has launched a countywide financial wellness drive to support small and medium-sized enterprises (SMEs) and retail customers with practical tools to better manage their finances amid rising economic pressure.
The initiative, which will run across key towns in Kenya, including Thika, Machakos, Nakuru, Eldoret, Kisumu, Nyeri, Meru, and Mombasa, will feature week-long activations that bring together financial experts, business owners, and industry partners.
Participants will gain access to hands-on training, financial education, and tailored solutions spanning savings, investment, debt management, and risk protection.
The initiative is anchored in insights from the recent Old Mutual Financial Wellness Monitor 2025, which shows that while 70% of Kenyans are optimistic about their financial future, many continue to face pressure from rising costs, high debt levels, and unpredictable income streams, thereby straining households and businesses.
“Across the country, we are seeing resilient entrepreneurs who are growing their incomes but still facing real financial pressure, from rising costs to inconsistent cash flows. Through this initiative, we are moving beyond conversations to action, giving customers practical tools to manage their money better, protect what they are building, and plan with greater confidence,” said Old Mutual Life Assurance Kenya (OMLAK) Managing Director Martin Karenju.
As part of the financial wellness drive, Old Mutual will roll out a series of country-wide public engagement activities to translate financial wellness insights into action. These include the launch of the “There Will Be Signs” campaign, a national awareness effort that highlights the everyday patterns of financial stress often overlooked by individuals and businesses. The campaign will be supported by on-ground engagements, including practical financial literacy sessions and personalised advisory clinics to help Kenyans recognise these signs early and get on the path to financial wellness.
The financial wellness drive reflects Old Mutual’s broader commitment to advancing financial inclusion and empowering individuals and businesses with the knowledge and resources needed to make informed financial decisions. The program will deliver accessible, inclusive engagements tailored to the real-world financial challenges faced by Kenyan households and enterprises.
SMEs Under Pressure as Old Mutual Steps In
The timing of the Old Mutual financial wellness initiative is significant, coming at a moment when SMEs, widely regarded as the backbone of Kenya’s economy, are facing mounting financial strain. According to the Kenya National Bureau of Statistics (KNBS), micro, small, and medium enterprises account for approximately 98% of all businesses in Kenya and contribute over 30% to the country’s GDP. They also employ more than 15 million Kenyans, making their stability critical to both economic growth and household livelihoods.
However, recent data shows that many of these businesses are under sustained pressure. A 2023 MSME survey by KNBS revealed that nearly 400,000 small businesses shut down annually, with access to finance, high operating costs, and market uncertainty cited as key reasons. This aligns with broader findings from the World Bank, which estimates that about 80% of Kenyan SMEs are either unserved or underserved by formal financial institutions.
One of the primary drivers of financial stress is the rising cost of doing business. Inflationary pressures, particularly in food, fuel, and energy, have significantly increased operational expenses. Kenya’s inflation rate averaged between 6% and 9% in recent years, according to the Central Bank of Kenya, eroding purchasing power and squeezing profit margins for small businesses. Electricity tariffs and fuel prices have also fluctuated sharply, increasing logistics and production costs across sectors.
Access to affordable credit remains another persistent challenge. While Kenya has a relatively advanced financial ecosystem, including mobile lending, many SMEs still rely on expensive short-term loans. Interest rates on unsecured digital loans can exceed 100% annually when fees are factored in, trapping businesses in cycles of debt. Even traditional bank loans, while more regulated, often require collateral that many small enterprises cannot provide.
Cash flow volatility is another critical issue. SMEs in Kenya often operate in informal or semi-formal markets where income streams are unpredictable. Delayed payments, especially for businesses supplying larger firms or government entities, further strain liquidity. According to the International Finance Corporation (IFC), late payments are a major contributor to SME insolvency across emerging markets, including Kenya.
Additionally, tax compliance and regulatory burdens have increased in recent years. While aimed at boosting government revenue, these measures can disproportionately affect small businesses that lack the administrative capacity to navigate complex tax systems. Coupled with multiple levies at national and county levels, this creates an environment where compliance costs eat into already thin margins.
The human dimension of financial stress is equally important. The Old Mutual Financial Wellness Monitor highlights that despite optimism, many Kenyans are dealing with high debt levels and limited savings buffers. Data from the Financial Sector Deepening Kenya shows that only about 39% of adults can raise emergency funds equivalent to one month’s income, underscoring the vulnerability of both individuals and business owners to economic shocks.
This is where initiatives like Old Mutual’s financial wellness drive could play a transformative role. By focusing on practical financial education, such as budgeting, debt management, and risk planning, the programme addresses not just access to finance, but the quality of financial decision-making. Research consistently shows that improved financial literacy leads to better business outcomes, including higher survival rates and increased profitability.
Moreover, the emphasis on personalised advisory clinics is particularly relevant. SMEs are not a monolith; their needs vary widely depending on sector, size, and location. Tailored guidance can help business owners make more informed choices about financing options, investment strategies, and risk management tools such as insurance, areas where Old Mutual has deep expertise.
From an inclusion perspective, the county-level rollout is also notable. By extending beyond Nairobi into towns like Eldoret, Kisumu, and Meru, Old Mutual is tapping into underserved markets where financial literacy gaps are often more pronounced. This decentralised approach aligns with Kenya’s broader economic development agenda, which seeks to empower counties as engines of growth.
In the long term, the success of such initiatives will depend on sustained engagement and measurable outcomes. Financial wellness is not a one-off intervention but a continuous process that requires behaviour change, trust-building, and access to appropriate financial products. If effectively implemented, Old Mutual’s programme could serve as a model for how private sector players can complement public efforts in strengthening SME resilience.
Ultimately, the pressures facing Kenyan SMEs are multi-layered, ranging from macroeconomic shocks to structural financing gaps. Addressing them requires equally multi-dimensional solutions. The Old Mutual financial wellness drive, grounded in data and focused on practical impact, represents a timely and potentially impactful step in that direction.
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