Workers In Coastal Region Urged To Build Financial Resilience Through Saving, Investing And Retirement Planning

Despite significant gains in financial inclusion across Kenya, a vast majority of workers in the Coast region remain financially vulnerable, exposing them to retirement insecurity and economic shocks, according to new data highlighted by financial services firm Octagon Africa.

The findings emerged during a Financial Wellness and Retirement Preparedness Forum held in Kilifi County, where employees, human resource professionals and business leaders gathered to discuss strategies for building long-term financial resilience through saving, investing and retirement planning.

The forum comes against the backdrop of a growing disconnect between access to financial services and actual financial wellbeing. While Kenya’s formal financial access rate rose to 84.8% of adults in 2024 from 83.7% in 2021, only 18.3% of Kenyans are considered financially healthy, according to the latest FinAccess Household Survey.

The situation is even more pronounced along the Coast.

Data presented at the forum showed that only 2.5% of adults in Tana River are classified as financially healthy, the lowest rate in the region. Kwale follows at 4.9%, Kilifi at 9.5%, Mombasa at 14.4%, Lamu at 16.3% and Taita Taveta at 20.8%.

The figures point to a broader challenge facing households across the region: translating financial access into wealth accumulation, retirement security and resilience against economic uncertainty.

“Financial inclusion is only the beginning. True financial wellbeing is measured by an individual’s ability to withstand economic shocks, achieve important life goals and retire with dignity,” said Fred Waswa, Group CEO of Octagon Africa.

“Many people focus on earning an income today without building the financial foundations needed for tomorrow. Wealth creation is not determined by how much you earn, but by how consistently you save, invest and protect your future.”

The forum focused on practical financial management strategies including budgeting, debt reduction, emergency savings, retirement planning and investment education.

Participants were also challenged to confront emerging financial risks such as inflation, rising healthcare costs, longer life expectancy, changing family responsibilities and disruptions in the labour market.

According to Waswa, these factors are fundamentally altering retirement planning assumptions for Kenyan workers.

“Inflation, healthcare expenses, longer life expectancy and economic uncertainty mean that retirement planning can no longer be postponed,” he said.

“Financial wellness, retirement readiness and financial literacy are no longer optional; they are essential life skills that help individuals build resilience and maintain financial independence throughout their lives.”

The retirement preparedness gap remains particularly significant.

Although pension access improved from 15.2% in 2021 to 20.4% in 2024, the majority of Kenyan workers still lack adequate retirement savings. Industry experts warned that without deliberate efforts to increase pension participation and voluntary retirement contributions, many workers risk facing financial hardship after leaving formal employment.

Participants were encouraged to establish emergency funds equivalent to at least six months of living expenses, reduce reliance on expensive debt and take advantage of occupational pension schemes and individual retirement plans.

They also received guidance on long-term investment opportunities through pension funds, collective investment schemes and capital markets, with financial advisors emphasizing the benefits of early investing and compound returns.

The forum forms part of Octagon Africa’s wider push to improve financial literacy and retirement preparedness among Kenyan workers.

As the Coast region continues to attract investment and create new employment opportunities, speakers argued that the next phase of economic growth must be accompanied by stronger household financial resilience.

For businesses, the discussion also highlighted a growing workforce challenge: employees who are financially stressed are often less productive, less resilient and more vulnerable to economic disruptions, making financial wellness an increasingly important component of talent management and workforce sustainability.

With rising living costs and longer lifespans becoming the new reality, financial experts say the ability to convert today’s income into long-term wealth may ultimately determine whether Kenya’s growing workforce can achieve financial independence in retirement.