An increasing number of Kenyan households are finding it harder to secure basics like food and shelter, the Consumer Outlook 2025 survey shows.
The report by market research firm NielsenIQ shows that an increasing number of Kenyans can no longer comfortably afford basic essentials.
“The proportion of Kenyans who only have enough for basic needs has dropped, with only 58 per cent saying they can currently cover basic needs such as food, housing, and utilities,” the report notes.
This is a sharp 10 percent decline last year, except for the astronomical price of inflation, higher living costs, and stagnant wages.
The report paints a picture of growing financial vulnerability as many consumers are forced to reduce expenditure or prioritize carefully for daily spending. It also indicates increasing public concerns over the economy as most Kenyans think the country has already fallen into a recession.
A staggering 91 per cent of Kenyans believe that the economy is currently in free fall, three percentage points above 88 per cent last year.
Although recession fears run high across all age groups, Generation X(aged between 45 and 60 years old) feels the pressure most. “This drives them to be especially cautious, focusing spending on essentials and cutting back on discretionary items,” the report explains.
In addition to current challenges, optimism for the future has also declined. The proportion of Kenyans expecting the country to go into a recession in the next 12 months has increased to 63 per cent from 60 per cent last year.
The study finds that the most worried are still Millennials (29–44 years) and Generation X. For Gen Z aged 13-28, employment security is the biggest concern.
On the top concerns that will shape consumer spend in 2025, NielsenIQ reports that Kenya is higher than the global average on concerns like rising cost of living for food, economic slowdown, and job insecurity. The concerns have grown compared to last year with some recording sharp hikes.
Consequently, Kenyans have resorted to trimming expenses. Consumers are keeping their basket price in check more tightly, shopping at discount stores, buying in bulk when products are on offer, and choosing necessities over luxuries.
They are also becoming more brand-flexible by accepting products on promotion, replacing with lower-priced products, and employing digital tools to hunt for discounts.
Looking ahead, the report anticipates consumers to spend more on essentials such as education, childcare, health, wellness, utilities, and financial services in the next 12 months.
Discretionary spending, on the other hand, will take the hit, with Kenyans anticipated to cut spending significantly on dining out, vacations, clothing and footwear, club memberships, entertainment, telecommunications, and even rent.
