What Is an Emergency Fund
A dedicated savings reserve for unexpected financial emergencies — job loss, medical expenses, urgent repairs. It is financial insurance that sits quietly until the day you need it.
How Much Do You Need
Three to six months of essential living expenses. If your monthly essentials are Ksh 50,000, your target is Ksh 150,000 to Ksh 300,000.
Where to Keep It
A separate, easily accessible savings account or money market fund — not your current account where you might spend it.
How to Build It Fast
Set a specific monthly savings target and automate it. Direct any windfalls straight to the emergency fund. Temporarily cut discretionary spending until you hit the first milestone.