This archive report was first published on 18 December 2019.
Published on December 18, 2019, a study conducted by the Retailers Association of Kenya (RETRAK) in partnership with Viffa Consult has revealed a concerning trend in disposable incomes for Kenyans.
According to the report, net spending across November and December is expected to range between Ksh. 5,000 and Ksh. 30,000, a significant drop from the higher average estimated at Ksh. 90,000 in prior years.
Households are expected to prioritize essential items such as food, with 35 percent of Kenyans feeling financially insecure and 41 and 39 percent of respondents marking a drop in money made and accumulated savings respectively.
Kenya's Gross Domestic Product (GDP) is expected to narrow in the year to 5.9 percent, weighed down by lower consumer demand, credit access constraints, and low productivity in agriculture.
Private sector credit growth has remained subdued, with a notable 6.6 percent peak at the end of the third quarter of 2019.
However, households are expected to hold out for better tidings in 2020, with the projected recovery in output expected to find leverage in contained inflation.
