This archive report was first published on 25 June 2020.
Published on June 25, 2020, a study by The Boston Consulting Group (BCG) highlighted the economic struggles faced by Kenyans during the Covid-19 pandemic. The survey, conducted in May, found that 92% of Kenyan consumers were experiencing a negative impact on their household income.
Monthly mortgage and rent payments topped the list of concerns, followed by utilities, school fees, short-term loan repayments, and support for extended family members. A staggering 68% of respondents were worried about being unable to meet their financial obligations.
The survey also noted a significant shift in consumer spending habits, with 88% of respondents opting for short-term credit loans, primarily from mobile money operators like M-shwari and KCB M-Pesa. The report stated, “As consumer prices rise, spending patterns are shifting away from discretionary products and services towards those deemed essential.”
Notably, a third of those surveyed confessed to being deep in financial trouble, while 40% were financially vulnerable. This underscores the severity of the economic impact of the pandemic on Kenyan households.
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