- Kenya’s Budget 2025/26 – a Test for Household-Centered Banking
The recently presented 2025/26 national budget has drawn attention for its potential to influence household finances in Kenya.
In a recent interview, Moses Muthui, Director of Consumer Banking at Absa Bank Kenya, offered insights into how budget measures could directly benefit everyday consumers, and how banks can enable that transition.
Kenya’s informal economy remains the backbone of household livelihoods. According to a 2024 labour market report, roughly 81% of non-agricultural employment in Kenya is informal.
That means millions of Kenyans rely on irregular, unstructured income, highlighting the urgency of designing banking solutions that are responsive to this reality.
Budget provisions that aim to formalise informal incomes, such as platform-based gig work, are attracting attention. Muthui stresses that such efforts can be transformational, but only if supported by consumer-focused financial tools.
He notes that access to credit, insurance, and savings doesn’t have to be limited to salaried individuals.Instead, banks can leverage mobile platforms and alternative credit-scoring mechanisms that assess income patterns, not just pay slips.
Smartphone deals
While mobile banking expands access, trust remains key. The budget’s initiatives to enhance cybersecurity and digital infrastructure are timely, as many Kenyans, including first-time users, need assurance that digital channels are secure and easy to use.
Muthui underscores the importance of this balance, that digital innovation must be intuitive and safe, ensuring that consumers feel empowered rather than overwhelmed.
Although digital channels are central, Muthui emphasises the continuing importance of personal interaction, especially during critical financial decisions like loans or savings milestones.
The budget’s investment in communications infrastructure offers an opportunity for banks to reinforce hybrid service models that combine efficiency with empathy.
Muthui observes that while the 2025/26 budget marks a shift toward supporting Kenyan households, its real impact depends on execution.
Banks must develop tools like flexible credit scoring, intuitive apps, and hybrid support systems that translate policy intent into practical solutions.
In this way, banking can function not just as a service provider, but as an enabler of financial resilience and dignity for households across Kenya.