Despite 36 per cent of consumers reporting income decreased in the last three months, 34 per cent saw increases, reflecting a six percentage-point improvement from a year ago, led by gains among Gen Z and Millennials.
Kenyan consumers were optimistic about their future incomes with 85 per cent expecting an increase over the next 12 months, particularly among younger generations.
In the past three months, 56 per cent of households (particularly among Gen X) reduced their discretionary spending, a decrease of seven percentage points from a year ago.
Looking ahead to the next three months, 49 per cent of consumers expected to reduce their discretionary spending, and 42 per cent anticipated cutting back on large purchases like appliances and vehicles.
Consumers expected to use increased disposable income to boost spending on retirement funds and investing (48 per cent), bills and loans (41 per cent), and digital services (38 per cent).
The possible easing of inflationary pressures in Kenya may lead to strong household disposable income growth, which could in turn support household consumption in 2024.
