This archive report was first published on 6 July 2021.
Published on July 6, 2021, a report by Enwealth Financial Services and Strathmore University revealed that 35% of pensioners in Kenya had taken a loan in 2020, with the majority borrowing from mobile loaning apps.
The report noted that the money borrowed by the elderly was mostly used to assist family members and support their businesses during the coronavirus pandemic.
According to the study, support to family members topped the list of things that retirees spend on, followed by social events, medical bills, and rent.
Retirees' increased borrowing from mobile apps is a concern, given the high interest rates and debt-shaming of loan defaulters by unregulated lenders.
Despite this, many elderly Kenyans continue to work even in retirement to boost their pension income, with 57% of them reporting other sources of income apart from pensions.
The report recommends that the government take action to cushion the elderly, including reducing taxes and setting up an emergency kitty to take care of their welfare.
