Most Kenyans expect household incomes to rise over the next year, with 84% optimistic about earnings, but financial pressure lingers as 62% anticipate missing at least one loan or bill payment.
- In the second quarter of 2025, 42% of Kenyan households reported a higher income compared with the previous three months, according to a new consumer survey by TransUnion.
- Moreover, 62% of consumers expected to miss at least one loan or bill payment in full, only a marginal improvement from the previous year.
- During the period, nearly a third of respondents reported wage reductions, another 29% faced job losses, and 26% saw household businesses close or lose orders.
“Kenya continues on its growth path, driven by resilient and value-driven consumers who are navigating a moderate inflation environment that’s inspiring cautious optimism in the country’s recovering economy,” said Morris Maina, CEO of TransUnion Kenya.
On macroeconomic concerns, inflation was cited by 76% of respondents as a persistent worry, followed by job security at 60% and housing costs at 55%. These pressures are shaping spending patterns as 61% cut back on discretionary outlays such as dining, entertainment, or travel, while 55% expect to reduce such spending further in the coming months. Large purchases are also being postponed, with nearly half of respondents anticipating reductions in spending on items such as appliances or cars.
The Demographic Divides
A greater percentage (74%) of Gen-X is willing to cut back discretionary expenses. On the flip side, only 68% and 52% of Millennials and Gen-Z respectively are willing to do the same. The older generation also increased their savings at a greater rate than the younger generation, with Gen-X recording 56% and Gen-Z and Millennials both sitting at 45%.
Among consumers expecting to miss at least one payment, 48% said they would pay what they can afford, while an equal proportion plans to take on temporary or gig work to cover obligations. Over a third of the consumers said they would dip into savings and 30% said they might borrow from friends or family, with Gen-Z surpassing other generations in pursuing this option.
Meanwhile, about 34% of the respondents said they have launched new businesses, while 18% took on new jobs and one in five received pay raises. On the money-management front, 40% accelerated debt repayment, slightly below last year’s pace, and 46% bolstered emergency savings. About 22% tapped more of their available credit, signaling growing reliance on borrowing.
The shift suggests that while households are squeezed, many are prioritizing resilience strategies to guard against future shocks. Informal and short-term coping mechanisms remain widespread. Nearly all respondents (98%) said access to credit is important, but only 36% felt they had sufficient access.
Even so, 69% planned to apply for or refinance credit within the year, led by demand for personal loans and mobile-based products. Many applications never materialize as 68% of consumers considered applying but abandoned the process, most commonly due to high borrowing costs, alternative funding sources, or fears of rejection linked to income or employment status. Interest rates were an added deterrent, with 61% of consumers saying higher rates significantly influenced their borrowing decisions.
Across generations, 75% of millennials plan to apply for new credit while only 56% of Gen-X plans to do so. Only 34% of Gen-Z believe they have sufficient access to credit facilities. These patterns suggest that while all age groups face similar economic concerns from inflation to job insecurity, their strategies for coping and planning differ sharply.
Monitoring credit scores and records is emerging as a key strategy for Kenyan consumers to manage debt effectively. About 65% of survey respondents said they check their credit at least once a month, signaling growing awareness of the role credit plays in financial stability.
Consumers cite multiple reasons for keeping a close eye on their credit, with more than half (55%) saying they monitor their scores to improve them, 50% do so to ensure accuracy, and nearly a third (32%) said tracking credit helps protect against fraud.
