Taxes, Inflation and bad leadership making Kenyans unhappy – study

The inaugural Kenya Happiness Index by Pierrine Consulting shows that Kenyan Consumers’ current happiness level stands at 51 percent with mixed views on the current realities in the country.

The study analysed consumer trends survey tracking happiness, optimism and spending choices, drawing analysis into buying behaviour and how that is linked to happiness.

According to the report a combination of taxes, high cost of living and poor leadership have worsened the financial situation of half of the Kenyans polled.

An estimated 49 percent said that their household financial situation worsened over the last six months, reflecting the impact of current economic headwinds on consumers.

Inflation rose to 6.78 in September close to the Central Bank of Kenya upper limit after all sectors recorded a general increase in prices.

Prices shot up after Energy and Petroleum Regulatory Authority pushed up fuel prices that have a big effect on inflation in the Kenya.

This pushed up transport costs, power generation and agricultural produce, which make heavy use of diesel. Kerosene is used in many households for cooking and lighting.

In the last 12 months, the government has steadily raised fuel prices, climbing from Sh133 to approximately Sh211 as of September 2023 representing about a 63 percent increase.

“Kenyans cited rising high cost of living, prevailing corruption amongst the leadership and mounting pressure on their available disposable income, as reasons for being worse off compared to six months ago,” Pierrine Consulting CEO Oluwaseyi Adeoye said.

With the Happiness Index at 51 percent, the survey believes consumers can really make do with brand engagements that are light-hearted and create happy memories.

According to the report in response to the increased fuel prices, Kenyan consumers are exploring more affordable transportation options, reducing household expenditures and spending more time at home.

An estimated 81 percent of Kenyans are now exploring cheaper means of transport, with 31 percent having reduced other household expenses, 27 percent are now staying at home to save on costs.

It further notes that in order to better manage their finances, Kenyan consumers are employing financial strategies such as debt avoidance, budgeting, investing and setting financial goals.

Slightly more than a half of Kenyans (52 percent) are avoiding debts, with another 46 percent taming expenditure by creating a budget for what they want to buy. An increasing number (42percent) have also

This has also seen Kenyans shun away from expensive brands and instead opt for cheaper alternatives.

Pierrine notes that Kenyan consumers have defied the tough times and increased spend on local travels, beverages, beauty products and skin care.

Kenyans from the age of 35 and above emerged as the unhappiest lot in the country at 41 percent followed by those between 25 to 34 years.

The middle-aged male Kenyans are however marginally happier than the rest of the population.

He added that consumers are now more pragmatic and will buy new products if these are within their expected price range for the category.

“New product launches must also be affordable because consumers are now more pragmatic and will buy new products if these are within their expected price range for the category,” added Adeoye.

Kenyan consumers' happiness is mainly driven by gratitude for good health and existing strong family ties (life relationships).

However, about 6-in-10 Kenyans are optimistic about the next 12 months and are excited that there will be an improvement in their financial wellbeing.