Most jobs being created in Kenya right now aren’t those advertised on LinkedIn neither ones with a payslip.
In 2024, 782,300 new jobs came into the economy, and the vast majority of them were in the informal sector. Over 83% of jobs are informal. That’s 17.4 million people.
Most of the workforce in Kenya is in the informal sector, which means they don’t get payslips, which means there are fewer ways to automate savings. It also means no deductions from their pay to pension schemes like NSSF, no automatic contributions to SHIF, and no access to employer-sponsored private insurance. It means they can’t get salary-based loans or take advantage of employment-based credit scoring.
Also read: The Limitations of Relying on 1 Paycheck
17.4 million people is almost a third of Kenya’s population. That’s too many people who aren’t exposed to as many financial tools or opportunities as those in formal employment. Granted, some informal sector workers could be earning just as much, if not more, than their formally employed counterparts. But income alone doesn’t equal access. The structure that formal work provides often unlocks things like easier borrowing, subsidised insurance, and long-term retirement planning.
Your state of employment shouldn’t deter you from reaching your financial aspirations. Whether you’re formally employed or working in the informal sector, the principles of personal finance still apply.
It might take more intentional effort when you don’t have a payslip or structured benefits, but it’s not impossible. You can still save, invest, get insured, and plan for the long term. It just means you have to build your own structure from scratch.
So, what can you do if you fall into this group?
Start with your mindset. When your income doesn’t come with automatic financial systems around it, you have to be your own system. That means tracking what comes in, what goes out, and deciding ahead of time what happens to the money you earn.
You can start small. Try the envelope system for budgeting. Divide your cash into categories like food, rent, savings, and transport. This helps you avoid spending without intention.
Whenever you’re paid, try to set aside even a small amount into a money market fund. You don’t need tens of thousands to get started. There are funds that let you start with as little as KSh 500. It’s less about the amount and more about the consistency.
Automate where you can. Tools like M-Pesa Ratiba allow you to schedule bill payments and keep some structure in your financial life. You can even set up standing orders to your savings or investment accounts.
Don’t skip insurance. Many people think it’s out of reach, but there are products designed for low-income earners and informal workers. Some start at a few hundred shillings a month. When your income is vulnerable, having a backup plan matters even more.
And finally, surround yourself with information. Follow pages that teach financial literacy. Talk to people who’ve figured out simple systems that work. Ask questions, try different methods, and find what fits your lifestyle and income flow.
Creating structure around your money when your job doesn’t provide it is possible. It takes a bit more effort and awareness, but over time it builds a foundation that allows you to grow, save, protect, and even invest; all on your own terms.
