Consumer Confidence In Kenya Rebounds For Now
Kenyan Consumer Confidence rebounds by 8 points
More positive outlook for immediate-spending intentions
Kenya’s latest Nielsen Consumer Confidence Index (CCI) score for Quarter 4, 2018 has rebounded by a healthy eight points since the previous quarter to 102. The survey conducted in the fourth quarter of last year reveals an underlying sense of optimism among the Kenyan consumers.
Consumer confidence returned to positive levels in Q4 in Kenya as a result of an overall uplift in the scores on job prospects, personal finances, and readiness to spend. The marginal decline in inflation and the decrease in food prices for some staple products, coupled with a resilient private sector could have boosted consumer sentiments in the last quarter.
There is also a more positive outlook in terms of Kenyan consumers’ immediate-spending intentions, which has increased to 29% of respondents (up from 22% in Q3, 2018) who say now is a good or excellent time to purchase what they need or want.
Improved sentiment is also reflected in 65% of Kenyans describing the state of their personal finances over the next year as excellent or good, up a positive seven points from Q3’18, and 29% as not so good or bad, down from 37% in the previous quarter.
The view around job prospects improved by a healthy six points over the previous quarter to 50% of consumers viewing them as excellent or good and a reduced 43% - down from 49% in the previous quarter - considering them as not so good or bad.
How do Kenyans spend their cash?
Looking at whether Kenyans have spare cash to spend 33% said yes, the same level as the previous quarter. When it comes to their spending priorities once they meet their essential living expenses, the highest percentage (86%) would spend it on home improvements up from 85%, followed by putting it into savings (82%) up from 79% and investing in shares and mutual funds (69%) down from 74%.
The year-end festival spirit could also be a reason for the optimism seen among Kenyan consumers and we hope that this sentiment continues into 2019 and translates into spend.