Economic times are proving harder, as Kenyans with over Ksh100,000 in their bank accounts dropped to a 13-year low of just 1,450,000 as of 2018.
In 2017, the number of Kenyans with the same amount and above in banks was recorded at 1,583,000 showing depreciating economic times.
This is according to a report set to be release next week by the Central Bank of Kenya (CBK), which paints a gloomy picture of the economic situation, dotted by dying companies, retrenchments and slowed cash flows.
This is only three percent of the total bank accounts in the country, which currently stand at 53.83 million accounts. Of these, only one percent of the accounts had more than Ksh1 million.
According to the Economic Survey report 2019, only 78,400 official jobs were created in the economy in 2018 compared to 114,400 in 2017
Mpesa maximum deposit ni 100k. I assume wewe ni bachelor, you don’t drive, have no aging parents to take care of or kids anywhere. Otherwise, 100k wouldn’t be considered enough float kama una majukumu ya family, aging parents na expenses kama gari zenye mechanic anaweza kwambia siku moja gearbox imeharibika. For a family man with all those expenses/risks, you need a thicker wall of liquid cash for emergencies, at least 500k. Anything above that you can invest but balance isiwahi cheza below 500k.
People without a wall of liquid cash are likely to sell assets for a song when they have major emergencies e.g a sick child. They are also likely to get shafted by banks with high interest loans or denial of loans.
My point: If only one million Kenyans have 100k balance, most Kenyans would not survive a major emergency which is why we have many harambees.
Watu hawana kakitu, na ni kwa sababu mnazaana zaana huku nje kama panya tu. At 30 years old, the average kenyan bonobo has atleast 3 dependants, not counting the stay at home wife.
Any adult with a sound financial bedrock ought to have atleast 250K in cash reserves that can be accessed in a matter of minutes. Its just being responsible and preparing for ineventualities. The rest can be held in near-cash assets or whichever your investment vehicle.
I agree. But I outlined for mtu ako na gari, a family, aging parents and probably in business where income is unstable. 500k ni mob as you reduce those responsibilities. For example, ukitoa wazazi na gari kwa hiyo mix, jamaa akuwe kwa stable job, then a nigga can do with a lot less. The general idea ni the more responsibilities you have, the higher your operating bank balance should be. Kukuwa na 2 or 3 kids na 100k bank balance hata bila other expenses is still a big joke. However, a bachelor with zero responsibilities living in a bedsitter somewhere and no car will do just fine with 100k operating balance.
Unless you want to join them below the poverty line, then you should have your shit together. Kitu sielewi ni aje mtu anaweza pata usingizi with dependants na 100k bank balance. Kenyan men are a daring lot.
If a bachelor with zero responsibilities apart from feeding himself told me that he operates with 100k, I would understand 100%. But with dependants such as kids and aging parents, that’s literally courting disaster.