In mid-February 2025, Old Mutual Limited released its 2024 Financial Services Monitor report for Kenya. The report highlights that half of working Kenyans own or run a business, with a significant percentage financing their ventures through microfinance and Sacco loans.
Old Mutual, an African investment and financial services group, publishes this financial services report annually to track the financial health of Kenyans and analyze how trends have shifted over the past year.
One of the key insights from last year’s survey was the financial priorities of Kenyans, revealing that 50% of them own or run a business. Additionally, 20% of all entrepreneurs are "polyjobbers"—individuals who supplement their main source of income with a side business.
To finance their business ventures in 2024, many Kenyans relied on self-financing, using funds generated from their investment returns. However, financial hardships in the region prompted 41% of business owners to take out loans to keep their businesses afloat, whether to purchase fresh stock or acquire the necessary equipment.
Among the various borrowing options, 28% of entrepreneurs received business financing through Sacco loans—nearly three times the number of those who borrowed from banks and other formal financial institutions. The Financial Services Monitor report further revealed that the use of Saccos among Kenyans is steadily increasing.
For instance, AFRESA, a partner of Positiviti Lending, currently has over 68,000 active members.
Africa Rebuilding Savings and Credit Cooperative (AFRESA) is a Kenyan-based Sacco that helps micro, small, and medium enterprises (MSMEs) overcome financial challenges. It offers various services to its members, including affordable loan products tailored for small businesses, which traditional financial institutions often consider high-risk borrowers.
Through its partnership with AFRESA, Positiviti Lending has advanced its financial inclusion vision, particularly in rural areas. At the same time, the micro-lending institution has attracted over 68,000 individuals and businesses interested in its microloans.
Recognizing Kenya as an attractive market for micro-lending, Positiviti Lending has established a strong presence in the sector. According to the 2024 Financial Services Monitor report, 3% of entrepreneurs turned to microfinance institutions like Positiviti Lending for financing. While this marked a drop from 12% in 2023, the decline was largely due to stricter government policies introduced in 2024 to regulate the growing number of digital lenders.
This crackdown on the micro-lending sector led to the closure of many unregistered digital lenders. However, Positiviti Lending, through its micro-lending platform AFRECASH, remained unaffected. In fact, it has become a preferred option for many MSMEs and entrepreneurs looking to launch or expand their businesses.
Beyond entrepreneurship, a significant portion of Kenyans also borrow money to sustain their livelihoods while awaiting their paychecks. Among this group, 35% opted for mobile loans, compared to just 11% who took out personal loans from financial institutions.
For consumers, mobile loans are often instant and easy to qualify for. On the other hand, these digital loans enable microfinance institutions to tap into the vast micro-lending market, reaching even the most remote areas. This is one of the key reasons Positiviti Lending has been so successful in penetrating the market.
