Sixty-two per cent of Kenyans say they expect to be unable to pay at least one of their current loans or bills in full in the coming quarter, according to a new report by TransUnion. The findings paint a challenging picture of household finances, as rising inflation continues to squeeze incomes and limit spending power.
How Are Kenyans Coping with Rising Costs?
Nearly half of those surveyed said they would take on temporary work to supplement their income. Others are turning to personal networks for support, with 34 per cent planning to use their savings and another 30 per cent expecting to borrow money from friends or family.
The report also shows that in the past three months, 31 per cent of Kenyans reported salary reductions, 29 per cent experienced job losses, and 26 per cent saw their household businesses close or lose orders. These economic setbacks have left many households struggling to stay afloat.
What Are the Biggest Financial Concerns?
The survey highlights inflation as the top concern for 76 per cent of Kenyans, followed by job losses at 60 per cent and housing costs such as rent or mortgage payments at 55 per cent. As a result, more than half of the respondents are cutting back on discretionary spending. Sixty-one per cent have reduced spending on dining out, travel, and entertainment, while 30 per cent have cancelled subscriptions or scaled back digital services.
Additionally, 42 per cent of Kenyans expect their retail spending to decrease, and nearly half, 49 per cent, anticipate cutting back on large purchases in the next quarter. Despite these financial pressures, many are avoiding borrowing due to high lending costs and fears of loan rejection linked to income and employment status.
Amid these challenges, some Kenyans are strengthening their financial safety nets. The report notes that 46 per cent are increasing their emergency savings, marking a five-point rise from the previous quarter. While household budgets remain strained, this trend suggests a growing awareness of the importance of financial resilience in uncertain times.
By Yockshard Enyendi