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Report: How Gen Z are driving a quiet revolution in Kenya’s banking sector
25th August, 2025 06:31 PM
Kenya’s banking sector is undergoing a quiet revolution, and it is being led by its youngest citizens.
With more than 70 per cent of the country’s population under 35, Generation Z is fast becoming the new face of finance, pushing traditional banks to go digital-first.
The State of the Banking Industry Report 2025, released on Monday, August 25, 2025, by the Kenya Bankers Association (KBA) highlights how this demographic wave is reshaping money management.
“The sector recorded significant signs of digital acceleration in 2024, including the licensing of at least 85 Digital Credit Providers and the rollout of the Fast Payment System (FPS),” the report notes.
For many young Kenyans, banking no longer means queuing at a branch or filling in forms. Instead, it’s about instant access to loans, payments, and savings via a smartphone. From campus students stretching allowances with mobile apps to hustlers powering online shops through digital wallets, the youth are rewriting the rules of money.
“Kenya’s banking sector accelerated digital transformation with adoption of the ISO 20022 messaging standard and licensing of at least 85 Digital Credit Providers,” the report adds.
Mobile debt crisis
A KBA customer survey confirmed the trend: youth overwhelmingly prefer digital apps over physical branches, though many still value an “omni-channel experience” that lets them move seamlessly between online and offline banking.
Banks have responded with products tailored for young users, from low-cost accounts and instant mobile loans to gamified saving platforms designed to appeal to Gen Z’s tech-savvy lifestyle.
But the shift has a flip side. Non-performing loans (NPLs) rose sharply to 16.4 per cent by December 2024, with household borrowing, popular among young customers, among the hardest hit.
The report warns that while digital loans offer quick relief, they can also trap the less disciplined in cycles of debt.
Even so, the long-term picture remains positive. According to KBA, youth-led demand for digital finance is expanding financial inclusion, especially for small traders and women entrepreneurs. Through its Inuka SME Program, banks trained more than 14,000 entrepreneurs in 2024, many of them young business owners.
“Banks increasingly integrated environmental and social considerations into investment decisions, aligning with emerging global standards,” the report observes.
