The findings from the survey conducted by Tala shed light on the economic realities faced by many Kenyans, particularly those in full-time employment. It’s striking to see that a significant portion, about two-thirds, of individuals with permanent jobs are engaging in side hustles to navigate the challenges posed by the tough economic conditions.
Farming emerges as a primary side hustle for many, indicating a return to more traditional means of generating income. Additionally, borrowing funds to invest in businesses and taking up supplementary gigs are common strategies employed by individuals to bolster their incomes.
The data also reveals a shift in borrowing behavior, with more salaried individuals turning to credit to invest in businesses. This suggests a proactive approach to mitigating the impact of inflation and rising costs of living. However, it’s noteworthy that the closure of some businesses might be attributed to prioritizing personal expenses over business investments due to financial constraints.
Annstella Mumbi’s insights into the lending landscape provide valuable context. The preference for lending to individuals with stable incomes reflects the perceived lower risk associated with this demographic. It’s understandable that lenders prioritize borrowers who are more likely to repay loans consistently.
The measures taken by Kenyans to cope with the economic challenges—cutting down on expenses, working overtime, taking additional jobs, utilizing savings, or even skipping meals—underscore the severity of the situation. These coping mechanisms highlight the resilience and resourcefulness of individuals amidst adversity.
However, it’s essential to recognize that while side hustles and borrowing can provide short-term relief, addressing the root causes of economic hardship requires systemic solutions. This may involve policies aimed at reducing inflation, supporting small businesses, and fostering economic stability.
Overall, the survey paints a nuanced picture of the economic landscape in Kenya, revealing both the challenges faced by individuals and their proactive responses to navigate these challenges. It underscores the importance of understanding the realities of everyday life for ordinary citizens and the need for holistic approaches to address economic inequalities and promote sustainable development.