Kenyans stick to spending plans in stable economy

Kenyan consumer confidence was unchanged and positive between April and June compared to the January to March period, underlining stable economic conditions, a new report says.

According to Nielsen Holdings, a global measurement and data analytics company, the second quarter Consumer Confidence Index (CCi) for East Africa as represented by Kenya was stable at 101.

“Consumer sentiment continues to be positive in Kenya post the recovery in quarter one. Going forward the economic outlook looks positive as the country’s GDP is stable with an expected growth in 2019 of 5.8 percent, way ahead of the sub-Sahara Africa average of 2.8 percent,” said Nielsen East Africa MD Faith Wanderi.

Nielsen said that evidence of the stability is that immediate spending intentions remained the same as the previous quarter, with 26 percent of Kenyans saying now is a good or excellent time to purchase what they need or want.

On the general economic front, Ms Wanderi, however, said that poor rainfall could hurt prospects for the next 12 months.

“Despite Kenya’s current stable outlook, Nielsen’s latest Africa Prospects Indicator report reveals weaker business and retail prospects in the next year and economists also warn that the country’s robust growth could be hurt by poorly distributed, below average rainfall,” she said.

“It will therefore be interesting to see how these factors impact consumer spending and confidence during the rest of 2019.”

On personal finance issues, the picture was mixed with some aspects improving while others deteriorated.

Kenyans’ personal finance outlook for the next year — whether they categorise them as excellent or good — has seen a two-point drop from 59 percent to 57 percent.

The survey said Kenyans’ view around job prospects has improved by a solid four points over the previous quarter, with 45 percent of consumers viewing their odds as excellent or good.

In terms of disposable income, 32 percent of Kenyans said they had spare cash, down one point from the previous quarter.