Sector Leaders Launches Campaign to Boost Financial Literacy

Enhanced financial literacy is key to ensuring financial sustainability and the country’s economic growth, according to financial sector players.

This was said  during the launch of the ‘Chora Plan’ (Plan Your Money) financial literacy campaign by the Kenya Bankers Association (KBA), in partnership with the Central Bank of Kenya and other stakeholders in an event held at the Nairobi Serena Hotel.

“I commend the Kenya Bankers Association and its partners for launching this program which is a critical step towards enhancing financial literacy across the country, which is fundamental for individual financial stability and overall economic growth,” said Central Bank of Kenya (CBK) Governor, Dr. Kamau Thugge who spoke at the event as the chief guest.

Dr. Thugge further noted that the campaign will seeks to promote financial literacy and inclusion in Kenya and thereby ensure financial stability of individuals and the country.

 “By equipping Kenyans with the necessary knowledge and skills to make informed financial decisions, we are not only empowering individuals and businesses but also laying a strong foundation for a more resilient and prosperous economy. The banking sector’s proactive approach in addressing financial illiteracy will undoubtedly have a lasting positive impact on our nation,” he added.

Chora Plan campaign to be conducted under the theme, ‘Strengthening Financial Health Through Financial Literature’ will seek to empower individuals and businesses with the knowledge and skills necessary to make informed financial decisions, ultimately leading to enhanced financial stability and economic growth.

His sentiments were echoed by KBA Chairman & NCBA Group MD John Gachora who said, “This program is a transformative step towards creating a financially literate society. By focusing on practical financial education in areas such as banking, insurance and pension services, we can help individuals and businesses make better financial decisions that benefit them and the broader economy.”

On his part, KBA Ag. CEO Raimond Molenje said: “We are excited to launch the Chora Plan program, together with our partners. Kenya’s financial literacy levels are very low as compared to even some of our neighbors in the East African region, which is quite a shame bearing in mind that we pride ourselves as the leading economy in the region. As the banking sector, we understand that we have a role to play to change this situation, well aware that financial literacy is the cornerstone for economic empowerment.”

The launch of the Chora Plan campaign comes in response to the low levels of savings and high financial illiteracy rates in Kenya. Despite Kenya’s economic growth, low levels of savings and high financial illiteracy rates have hindered the financial well-being of many Kenyans. According to a 2021 Global Financial Literacy Survey, only 38% of Kenya’s population is financial literate, highlighting an urgent need for enhanced financial education.

The Chora Plan! aims to bridge this gap by equipping Kenyans with basic financial knowledge in areas such as budgeting, saving, investment, debt management, and planning. By doing so, it seeks to promote financial stability and independence, ultimately leading to sustainable socio-economic growth and better financial health across the economy.

The program will target diverse groups within both rural and urban communities, including small-scale farmers, agricultural workers, rural entrepreneurs, indigenous communities, high school and college students, young professionals, low-income families, and youth in informal settlements. By focusing on these key demographics, the program aims to create a broad and inclusive impact, ensuring that financial literacy benefits all segments of society.

PesaLink CEO, Gituku Kirika stated, “As an industry, we are committed to helping customers make smart financial decisions. By watching transaction fees and making a plan, customers can save money and improve their banking experience. PesaLink’s goal is to empower bank customers in Kenya with the knowledge and tools they need to manage their finances efficiently.

With PesaLink, sending money has never been easier or more cost-effective.”Visa Country Manager Eva Ngigi, said, “Just like reading and writing is taught in schools, financial literacy is an important skill to have to grow the competency amongst the younger generation. Innovation is in Visa’s DNA. Through gamified methods, we are making financial education engaging and accessible to all. We aim to provide everyone with the tools to make informed financial decisions and this includes programs for school going children.”

Hellen Chepchumba Chepkwony, CEO, Kenya Deposit Insurance Corporation (KIDC) said, “The campaign will help us achieve our long-awaited mandate to empower individuals with the knowledge and skills to make informed financial decisions. KDIC’s role in financial literacy is complementing the CBK to ensure stability and ensure deposit education is imparted on borrowers and the public to maintain financial stability.”