Financial Literacy and Entrepreneurship Educator Waithaka Gatumia warns that unnecessary spending and poor money habits are driving financial strain among Kenyans.
He emphasizes tracking expenses, prioritizing savings, and creating disciplined budgets. Gatumia says many people unknowingly waste money on small daily costs, urging a shift toward mindful financial management to secure long-term stability.
Speaking during a Radio Generation interview, Gatumia said many people struggle financially not because they lack income, but because they do not understand where their money goes.
“It’s not that people don’t have money, it’s that we don’t know where it’s going. We are not in control,” he said.
He pointed to everyday expenses that often go unnoticed but accumulate into significant amounts over time.
These include mobile money transaction fees, impulse purchases, and frequent takeout spending. “Do you know how much you pay these telcos for the use of their service? Most people don’t,” he noted, adding that such costs could amount to substantial sums annually.
Gatumia highlighted a personal example to illustrate the issue, revealing that he once discovered his household was spending more on takeout food than on rent.
“We found we were spending more on takeout food than our rent, over 34,000 shillings,” he said, describing how small daily expenses like lunch and weekend outings added up.
He stressed that this pattern is common among the middle class, who often assume they are financially constrained without examining their spending habits.
“Middle-class people don’t know where their money goes,” he said, urging individuals to track their expenses through mobile money statements and bank records.
According to Gatumia, financial discipline begins with a simple but often ignored principle: paying yourself first. “Anytime money comes in, some saved, some invested, then now we look to spend,” he explained.
He emphasized that the focus should not be on the percentage saved, but on building a consistent habit.
He also warned against what he described as “jumping steps” in financial planning, where individuals attempt to invest without first establishing savings.
Beyond personal spending, Gatumia addressed social and cultural pressures that influence financial decisions, particularly the expectation to support relatives.
While acknowledging the importance of community support, he cautioned against overextending oneself. “Everyone has a plan for your money, so you better have a plan for yours,” he said.
His recommendation is to set a clear budget for giving. “Have a budget for giving, decide this is how much we’re going to give,” the financial educator advised, adding that generosity should be balanced with financial sustainability.
Gatumia also linked poor financial habits to upbringing and social conditioning. He noted that children often learn money behavior by observing adults. “Children learn by what you do,” he said, encouraging parents to involve their children in budgeting and planning to instill better habits early.
He further pointed to the influence of social media, where people feel pressured to match lifestyles they see online. “I’m trying to live that life, not knowing where your money comes from,” he said, describing how such comparisons lead to overspending and financial stress.
Ultimately, Gatumia said the key to financial stability lies in awareness and intentional decision-making while urging individuals to regularly review their spending and make conscious choices about their finances.
“The money you have, that’s what you work with,” he said. “If it isn’t working, then you need to ask yourself, what do I need to do so that this money actually works?”
