A growing number of salaried Kenyans are turning to side hustles as economic hardships and mounting debts push them to seek additional income, a new consumer survey has revealed.
The MoneyMarch 2025 report by fintech company Tala found that nearly three-quarters of respondents have also cut back on non-essential expenses to cope with rising costs.
As households struggle with increased bills and new tax measures, the survey further indicates that half of the consumers polled are now borrowing more than last year to fund their side businesses.
Additionally, about one-third of respondents admitted to taking out more loans since the beginning of the year, with the funds mostly used for education expenses (school fees) and daily necessities in response to the high cost of living.
The survey highlights a shift in employment trends, noting that full-time employment is on the decline, while business ownership is rising. However, fewer workers are engaging in side hustles, which the report attributes to financial constraints limiting income diversification.
It also found that 92 percent of consumers said that the rising cost of living has significantly affected their household budgets.
Kenyans Relying on Digital Lending for Survival
The findings indicate that Kenyans are increasingly turning to digital lenders such as Jijenge Credit and Safaricom’s overdraft facility, Fuliza, alongside other mobile loan apps and informal borrowing networks for liquidity. Digital lending platforms now account for nearly 60 percent of loans disbursed to adults.
Economists say this trend reflects a worsening cash circulation crisis in an economy that remains fragile.
Peter Macharia, the CEO of Jijenge Credit and Chairman of the Digital Credit Providers Association of Kenya, acknowledged that the side hustle boom is evident across all age groups, income levels, and industries.
“And it is unlikely to slow down, especially among younger generations who are comfortable juggling multiple income streams, thanks in part to a thriving creative industry,” Macharia observed.
He also noted that Kenyan SMEs are now requesting larger loans to expand their operations, prompting Jijenge Credit to review its loan sizes to match the growing demand.
Survey Insights to Shape Financial Strategies
The survey, conducted between January and February 2025, explored how consumers earn, spend, save, borrow, and invest amid economic shifts. The findings aim to help financial institutions, policymakers, and businesses craft strategies to enhance consumer resilience in a changing financial landscape.
