This archive report was first published on 24 August 2021.
Published on August 24, 2021, a report by The Standard highlighted the alarming trend of young people in Kenya seeking overnight riches without putting in the effort to save.
Experts point out that the youth are spending more than they make, leaving little or nothing for investments. This reckless spending has led to a financial rut for many.
Al Kags, the founder of Open Institute, a non-profit that promotes open governance and citizen participation, attributes the youth's behavior to a lack of mentorship from older, successful individuals. He notes that when asked about their secret to success, some successful people give vague answers, such as 'work hard and believe in yourself.'
However, Kags argues that youths are not told about the long sleepless hours spent in pursuit of wealth. Instead, they are often exposed to stories of tenderpreneurs and politicians who made their fortunes quickly, but without explaining the jobs or businesses that made them successful.
According to reports, in 2019 alone, local punters wagered more than Sh30 billion in a single month. Many young people have fallen victim to Ponzi schemes that promise quick returns, while others have been lured into sports betting and casinos.
Associate Professor of Economics at the University of Nairobi, X N Iraki, blames society for failing to inculcate the values of saving and financial prudence in the youth. He argues that we have taught them to prioritize shortcuts over hard work and that we should stop glorifying get-rich-quick schemes.
Dr. Njau Gitu, the director of Australia Education Global Advisors, also faults the education system for not teaching financial literacy effectively. He advocates for incorporating financial literacy as a core subject in the education curriculum, starting from lower levels of school to university.
Anthony Manyara, the president of the Kenya University Students Association, attributes the youth's behavior to a lack of opportunities and the pressure to succeed, which is further compounded by social media.
