A new survey has revealed a mixed financial outlook for Kenyan consumers in the second quarter of 2023.
The research by TransUnion found that while eight in 10 (79%) expect their household incomes to increase in the coming year, four in 10 (41%) reported a decrease in income over the past three months, and a similar number (42%) anticipate being unable to pay their current bills and loans in full.
One of the significant factors contributing to the decrease in household income was job loss, with 30% of consumers reporting that someone in their household lost their job over the past month – an eight-percentage point increase from the previous year. Other factors impacting income included wage or salary reductions and declining small business revenue.
Many consumers have been forced to adjust their household budgets in response to these challenges, with as many as 62% cutting back on discretionary spending over the past three months.
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Looking ahead, consumers are bracing for further financial strain. A significant 39% of consumers expect an increase in bills and loans, while 44% expect their in-store and online shopping to decrease.
In addition, 55% of consumers plan to make further cuts to their discretionary spending, and 47% expect a decrease in large purchases such as appliances and cars.
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