How Declining Incomes Fuel Side Hustle Growth

Recently, on a show on NTV, panelists lamented how “these days, 1,000 bob is not worth much.” They discussed shrinking payslips, declining purchasing power, and the rise of the kadogo economy, where households survive on small, piecemeal transactions. Their conversation captured the daily reality for millions of Kenyans: the struggle to stretch limited incomes in the face of rising costs.

This erosion of purchasing power has given rise to a parallel economy built on side hustles—small ventures, digital gigs, and freelance work that now form the backbone of everyday survival.

Across the country, side hustles have become an essential part of everyday life rather than an optional supplement. With limited access to stable employment and rising living costs, many individuals increasingly rely on multiple sources of income to meet basic needs.

This shift reflects a broader economic reality where adaptability, creativity, and persistence are no longer just advantages—they are necessities.

Multiple Income Activities Among Workers

A growing number of young adults and working individuals are engaging in additional income‑generating activities alongside their main occupations. These range from informal ventures to digital opportunities that allow people to work remotely.

For many, a single salary is no longer sufficient to cover rent, food, transport, and other daily expenses. This has prompted a steady rise in small‑scale enterprises and freelance work.

Diversity of Side Hustle Opportunities

The types of side hustles vary widely. Some individuals engage in online services such as writing, design, virtual assistance, or tutoring, often through global platforms that connect them with clients beyond their immediate environment.

Others prefer hands‑on businesses like small‑scale farming, retail vending, or food preparation, which provide quicker daily returns. Social media has also become a powerful marketing tool, enabling individuals to reach customers directly without the need for physical storefronts.

Rise of Digital Reselling and Online Commerce

Among younger generations, particularly those familiar with digital spaces, reselling pre‑owned goods has gained popularity. This involves sourcing affordable items, improving their presentation, and marketing them through short‑form videos, images, and direct messaging platforms.

With minimal startup capital, individuals are able to build customer bases gradually through consistency, creativity, and trust‑building.

Challenges of Managing Multiple Hustles

Despite the opportunities, the side hustle economy comes with its own set of challenges. Managing multiple responsibilities often leads to long working hours, reduced rest, and increased mental and physical fatigue. The pressure to maintain several income streams at once can also affect personal well‑being, relationships, and overall quality of life.

Financial Strain and Instability

Financial instability further complicates the situation. Some individuals rely on borrowing to sustain their ventures, while others reinvest most of their earnings back into their businesses, leaving little for savings or emergencies.

This creates a cycle where constant effort is required to maintain even modest financial stability.

Expert Perspective: Turning Hustles into Wealth

Benjamin Cheruiyot, the Engagement Lead at Abojani Investments, a personal finance and investments advisory firm, cautions that side hustles alone are not enough for long‑term financial independence. “No matter how much you work and earn at any job, the moment you stop working, you stop earning,” he says.

Cheruiyot advises saving and investing aggressively in one’s late 20s to early 30s—at least 20% of monthly income. He emphasizes consistency over complexity: setting up accounts, contributing regularly, and reinvesting returns in dividend stocks, government debt, unit trusts, and diversified currencies.

He also notes that while side hustles can supplement income, true wealth comes when individuals stop treating them as “extra” and start building them into full businesses. “Side hustles focus primarily on some income that’s hardly enough to cover bills. When you start thinking of it as a business, you give it more attention, employ efficiency, and scale up to greater heights,” he explains.

Cheruiyot encourages young people to use weekends to brainstorm ideas, upscale ventures, and think beyond short‑term hustles.

He adds that financial independence requires a mix of strategies: acquiring new skills, exploring freelance work, saving consistently, networking, and seeking promotions or higher‑paying opportunities.

Resilience and Adaptation in Difficult Conditions

Still, the rise of side hustles reflects resilience and innovation in the face of economic constraints. It shows how individuals continuously find ways to adapt, using available resources to create opportunities where traditional employment falls short.

As this trend continues, conversations around sustainable work, fair opportunities, and economic support systems become increasingly important.

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