Six in 10 Kenyans struggling to keep up with bills — Report

Sixty-two per cent of Kenyans expect to be unable to pay at least one of their current loans or bills in full in the coming quarter.

According to a report by TransUnion, nearly half of those surveyed say they would take on temporary work to supplement their income.

This elevation is putting pressure on consumers, with a recent report from credit agency TransUnion now showing that over 55 per cent of Kenyans expect their discretionary spending to decrease in the next three months.

The report further indicates that an additional 34 per cent now say they plan to use their savings, with another 30 per cent expected to borrow money from friends or family.

In the last three months, 31 per cent of Kenyans have also reported a salary reduction, while 29 per cent experienced job losses. Another 26 per cent reported that their household business closed or lost orders.

The report indicated that Kenyans were concerned about macroeconomic dynamics, particularly inflation, job security, and housing prices.

Seventy-six per cent of Kenyan consumers noted that inflation is a key financial concern, followed by job losses at 60 per cent and housing prices (rent or mortgage) at 55 per cent.

These factors, they say, have led them to cut back on discretionary spending such as dining out, travel, and entertainment. Sixty-one per cent of those surveyed said they have cut back on spending, while another 30 per cent have cancelled their subscriptions and discontinued or scaled back their use of digital services.

Additionally, 42 per cent of Kenyans expect their spending on in-store or online retail to decrease, with nearly half of those surveyed—49 per cent—expecting to spend less on large purchases in the next quarter.

But despite the financial constraints, consumers aren’t turning to borrowing, citing what they term high borrowing costs. Thirty-one per cent said they are opting to find alternate funding, while 29 per cent expressed concerns about being rejected due to their income or employment status. The findings highlight how affordability and perceived ineligibility continue to limit access to credit.

On the upside, however, these factors have led to an increase in savings for those with flexibility. Forty-six per cent of Kenyans are increasing their emergency savings, a five-percentage-point rise from Q2 2024.