Saccos key in driving savings culture in Kenya
The country like most African states has been suffering from chronic low savings rates, primarily attributed to financial illiteracy.
With a population of approximately 50 million people, only 38 percent of Kenyans are financially literate.
The government has identified the Saccos movement as a key driver in boosting Kenyans' savings culture.
This is among Kenya Kwanza's plan to set up a local pool where the government can borrow to meet its obligations.
The country like most African states has been suffering from chronic low savings rates, primarily attributed to financial illiteracy.
A Global Financial Literacy Survey showed that Kenya has alarmingly low financial literacy levels.
With a population of approximately 50 million people, only 38 per cent of Kenyans are financially literate.
In an effort to change this culture, Deputy President Rigathi Gachagua said Kenyans should embrace a saving culture, to cushion the government from foreign borrowing.
“We want to enhance the saving culture in Kenya so that we borrow our money as a country from our own savings. In the past, we have been borrowing money from foreign nations whose citizens have saved yet here we were not saving,” said Gachagua.