As thousands of first-year students join universities across Kenya this week, excitement about campus life can come along with the harsh reality of the high cost of living and survival.
Inflation rates affect everything from food to transport, and new students must quickly learn how to manage money wisely while balancing academics and social life.
According to data from the Central Bank of Kenya (CBK), Kenya’s overall inflation stood at 4.1 per cent in July, up from 3.8 per cent in June 2025, because of higher prices of processed foods such as sugar and maize flour.
Food prices have surged in the past year, while transport costs have risen following an increase in fuel prices. For university students, this means higher rent, more expensive meals at campus cafeterias, and increased commuting expenses.
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1. The First Survival Skill for Kenyan Students is Budgeting
First-year students should set short-term financial goals, such as creating a weekly or monthly budget.
A well-planned budget ensures that essentials, such as food, transportation, and rent, are prioritised over impulse spending.
For instance, instead of daily fast food runs, students can cut costs by cooking in hostels or sharing meals with roommates.
Financial experts recommend the 50-30-20 rule. This means 50 per cent of the money goes to needs, 30 per cent to wants, and 20 per cent to savings.
Although savings can seem impossible for students on a budget, even putting aside Ksh50 a day can build an emergency cushion.
2. Side Hustles to help in Earning While Learning
To survive the rising cost of living, many students are turning to side hustles.
Campus entrepreneurs across the country are running businesses from online writing and graphic design to baking and thrift clothing sales.
Additionally, other students have leveraged digital platforms to earn money as social media managers, TikTok content creators, or YouTube vloggers.
Freelance platforms such as Upwork, Fiverr, and local gig apps allow students to earn extra cash online.
3. Maintain Financial Discipline to Avoid Debt
Mobile loaning apps have flooded the Kenyan market, leaving many university students trapped in debt cycles, even after completing their studies.
Platforms like Fuliza or M-Shwari should only be used in emergencies, not to fund daily spending.
Additionally, first-years are especially vulnerable to peer pressure and may borrow money to finance lifestyles they cannot afford.
Instead of making financial decisions, Economist and Business Advisor Christian Ogwedhi advises that, for example, pooling resources with friends can help buy household items like gas cookers or water dispensers at a lower cost.
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4. Cutting Costs and Some Practical Hacks for Campus Living
Apart from budgeting and hustling, small lifestyle adjustments can make a huge difference, according to Christian, who spoke to The Kenya Times.
- Transport: Students can save by using public buses (matatus) instead of boda bodas, or by organising carpool groups. Some universities also offer subsidised shuttle services.
- Food: Buying groceries in bulk from local markets is cheaper than relying on supermarkets. Cooking with friends and meal prepping can cut costs further.
- Rent: Sharing rooms or moving slightly off-campus often reduces accommodation expenses. While on-campus hostels are limited, off-campus bedsitters or shared apartments offer affordable alternatives.
- Second-hand items: From books to furniture, second-hand markets can provide budget-friendly options for students.
5. Building Financial Resilience for Life After Campus
Christian argues that learning money management in university prepares students for life after graduation.
According to him, simple steps such as opening a savings account, tracking expenses, and investing small amounts in money market funds can set the foundation for financial independence.
First-years have been encouraged to avoid comparing themselves to peers.
6. Use your student ID for Reduced Prices
First-year students should never underestimate the power of their student ID card to enjoy lower rates.
For instance, cinemas in Nairobi and Mombasa run student packages that allow learners to enjoy movies at lower prices, and popular fast-food chains located near campuses often introduce “student combos” to attract the campus crowd.
Also, students can enjoy online entertainment at huge discounts, including on platforms like Spotify.
Students also get discounts from mobile providers like Safaricom Blaze bundles or banks offering student-friendly accounts
These small adjustments make a huge difference when managing tight budgets, and they also encourage young people to start building smart financial habits early.
7. Use Free Campus Resources
One of the biggest mistakes first-year students make is spending money on services that the university already provides for free.
Instead of paying for expensive internet bundles or renting computers at cyber cafés, students can maximise free Wi-Fi and computer labs on campus.
Most universities have 24-hour libraries equipped with internet, comfortable study spaces, and even charging stations for devices.
By making the library their second home, students can significantly reduce unnecessary expenses while improving their academic performance.
Additionally, campus life is full of opportunities to benefit from free workshops, talks, and student events organised by the university or external partners.
These sessions often provide valuable learning materials, career insights, and sometimes free meals or refreshments.
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