According to Moody’s survey, Kenya comprised of 400 thousand middle class and lower middle class both of which were at 4% in 2014, but as per their forecast, by 2030 upper middle class will comprise of 0.1m upper middle class 0%, middle class will comprise of 1.1m or 8% and lower middle class will comprise of 1.4m or 10% as illustrated below.
Largely in context, the biggest population will be the low income, as per Moody’s survey in 2014 this segment comprised of 9.2M or 92% and as per their forecast in 2030 this number though will reduce in percentage terms in number terms it will be higher comprising of 11.9m or 82%.
On Corporates setting up shops in Kenya
“In the past year several companies have scaled back their Kenyan operations after overestimating demand growth. These companies should ensure that their offering is appropriately scaled and positioned for the market. This means conservative rather than aggressive expansion and products that are both affordable and suited to local use. Corporates which adapt to local tastes are more likely to be successful in Kenya than those which try to adapt local tastes to their offerings.” says Moody’s Investor Service
A light touch On Some Listed Companies;
According to the credit rating firm, building materials, construction and engineering services will benefit from ongoing private and public infrastructure and property development with ARM Cement, Bamburi Cement and E.A. Portland Cement Limited being well positioned to benefit from increasing demand for cement for construction of new shopping malls, housing developments, office parks and government public works projects. Airport infrastructure is needed to support growth in Kenya Airways Limited’s regional and international flight routes.