This archive report was first published on 24 December 2019.
Kenyans Tighten Purse Strings This Christmas Amid Tough Economic Times ¶
Published on December 24, 2019
Despite the tough economic times, many Kenyans are still planning to spend money on travel, food, and gifts during the Christmas season. However, a recent survey by Trends and Insights for Africa (TIFA) suggests that the economic environment is taking a toll on many households.
According to the survey, 42 percent of Kenyans plan to spend less than they did last year, while only three out of 10 respondents hope to spend more. Six percent of Kenyans will spend the same amount they did in 2018.
The survey, conducted between December 17 and 22, found that Kenyans will spend an average of Sh4,348 on travel and accommodation, foodstuffs, clothes, and family. This is a significant decrease from previous years, when Kenyans spent an average of Sh6,000 on these items.
Expenditure for the festivities varies from county to county, with some outspending others by far. Those in the North-Eastern part of the country are more likely to loosen their purse strings than those from elsewhere in the republic, spending an average of Sh7,879 on these commodities.
At an average of Sh3,498, people from Nyanza will spend the least, compared to Kenyans from other parts of the country. The survey shows that Kenyans from Central will spend the least on travel, paying an average of Sh1,993.
The high cost of living and poverty are major factors contributing to the economic woes of many Kenyans. According to the survey, 60 percent of respondents feel worse off financially compared to the same period last year.
Most Kenyans attribute their financial woes to rampant corruption in the government, unemployment, the high cost of living, and poverty. Only 21 percent say their financial well-being has improved since last Christmas.
Interestingly, 70 per cent of those surveyed in North-Eastern Kenya could not tell whether their economic well-being had improved or not in the last year.
