Why Many Kenyan Youths Struggle Financially

Above 70% of Kenyan youths are struggling financially. Nearly 50% of the youths in Kenya have undergraduate degrees while half of the remaining percentage have completed the O levels. These facts insinuate that most of the Kenyan young people are educated. However, the fact that a majority of this population is still struggling with money related issues is daunting.

The main cause of financial struggle among Kenyan youths arise from the mode of education in the country. The past 8-4-4 curriculum was somehow misleading. In Kenya, you’ll find that a majority of the younger generation was fed with the notion that education guaranteed them a better future through employment.

On the contrary, there are no jobs in Kenya thus the main challenge facing youths in Kenya is unemployment which has in turn led to uncontrolled increase in drug abuse. 

Why Kenyan Youths Struggle with Money

Understanding the financial difficulties experienced by Kenyan youths requires an examination of the country's historical and economic environment. Kenya's history is characterised by colonization, political instability, and economic inequality. While the country has made tremendous improvement in recent years, these historical causes have had a long-term impact on the Kenyan economy. Today's youth inherit both the opportunities and the challenges that come with this heritage.

Kenyan Shilling Exchange Rate with the US Dollar Over 10 Years

Lack of Access to Quality Education

One of the most significant challenges confronting Kenyan youth is a lack of access to high-quality education. Inadequate schools, overcrowded classes, lack of resources, and teacher shortages can all impede their learning experience. 

Young Kenyans without a good educational basis may struggle to find well-paying employment or start profitable enterprises.

To address this issue, we must work together to strengthen educational infrastructure and give fair opportunity for all. Scholarships, mentorship programs, and vocational training can help bridge the gap and provide essential skills to young people.

Unemployment and Underemployment in Kenya

Youth unemployment and underemployment are widespread challenges in Kenya. Many graduates are unemployed, while others accept positions that do not fit their qualifications. The formal job market frequently cannot absorb a large number of job searchers, pushing many to work in the informal sector with dubious income prospects.

Job creation through entrepreneurship and the promotion of industries with high employment potential are two solutions. Furthermore, initiatives to combine education and market demands can assist adolescents in acquiring skills that are in demand in the employment market.

Lack of Financial Literacy

Another critical factor influencing Kenyan youth's capacity to handle their financial destinies is financial literacy. Many young people lack basic budgeting, saving, and investment expertise. As a result, they are exposed to financial hazards and scams.

Financial literacy efforts should be integrated into school curricula and supported by community-based programs and digital platforms that offer financial instruction and tools.

Youth Entrepreneurship and Access to Capital

Entrepreneurship offers Kenyan youths a road to financial independence. However, securing financing, particularly capital has been a significant impediment that barres Kenyan youth from starting and developing businesses. Young entrepreneurs frequently have difficulties in obtaining loans or funding to establish or expand their firms.

To address this issue, the government and business sector should collaborate to develop programs that give financial assistance, mentorship, and networking opportunities for prospective young entrepreneurs. Crowdfunding platforms and venture capital funds geared toward young people can also play an important role in fostering entrepreneurship.

Cultural and Societal Factors

Cultural norms and societal expectations might have an impact on young people's financial decisions. Many Kenyan families are under pressure to pursue conventional work rather than entrepreneurial endeavors. It is critical for young empowerment to change these views and promote a culture of financial independence and entrepreneurship.

Government Policies and Initiatives

Youth employment and financial inclusion policies must be assessed and improved by the government. Initiatives such as the Youth Fund and the Uwezo Fund have been launched, but their performance can be improved with better targeting, openness, and evaluation.

Role of Technology and Innovation

Technology and innovation have the ability to transform Kenyan teenagers' financial landscape. acquire to digital platforms and mobile banking can give them the tools they need to manage their finances, acquire financing, and grow their enterprises.