This archive report was first published on 2 September 2019.
Published on September 2, 2019, a study by research consultancy firm Kantar has highlighted the changing shopping habits of Kenyans in the face of economic challenges.
According to the study, Kenyans make an average of 300 shopping trips per year, which is significantly lower than their counterparts in Ivory Coast, Ghana, and Nigeria. The main reason for this trend is the desire to 'get more for less,' as consumers seek to save money and reduce trips to supermarkets.
While Egyptian shoppers made 746 trips per year, Ghanaian shoppers averaged 560 trips, and Nigerian shoppers made 390 trips annually. The study notes that despite Kenya's economic growth forecast of over six percent in 2019, the country's economy is experiencing a 'perfect storm' at the micro level.
Kenya has the lowest average household spend of about $220 (Sh22,758) on first-moving consumer goods (FMCG), compared to Nigeria ($228), Ghana ($349), and Ivory Coast ($363). The country is also one of the most expensive, with an average price of Sh51 per item, compared to Sh20 in Nigeria, Sh31 in Ghana, and Sh31 in Egypt.
The study highlights the impact of high prices on consumer behavior, with many Kenyans turning to credit purchases or second-hand goods to make ends meet. The report notes that 80 percent of low-income household spending on local brands was on big packs (those above 100 grammes), particularly in the home and personal care sectors.
Local brands are seen to be capitalizing on this trend by offering affordable price points, with companies like Unilever playing in these segments to drive affordable consumption. The 'buy what you need' approach through dispensers is also gaining traction, with the growth of fresh milk and cooking oil 'ATMs' in Kenya cited as a great example.
