Markets & Finance

StanChart poll shows child education priority for rich Kenyans

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Pupils at an educational exhibition in Nairobi in September. PHOTO | JEFF ANGOTE |

More than half of Kenyan upper middle class households are saving for their children’s education, ahead of emergencies and property purchase, a new survey shows.

The Standard Chartered report released Tuesday says 55 per cent of the emerging affluent homes have prioritised their children education ahead of property purchase (45 per cent) while half of them save for emergencies.

The poll shows that Kenyan households, Nigeria’s and those in Asia plan to save 30 per cent of their income in the next one year up from 26 per cent last year, which is higher than their counterparts in the UK and US at 4.9 per cent.

Kenyan wealthy homes are increasingly placing a priority on education with most sending their children to top private schools that are better equipped and staffed as a passport to a better future.

The preference for private tuition is due to Kenya’s rickety public learning institutions that are grappling with high enrolment levels, low teacher-pupil ratios and industrial unrest brought home by the recent disputes between teachers and the government.

The poll says that 56 per cent of the rich homes expressed confidence in Kenya’s growth but cited insecurity as a drag.

“The economy is improving and the education system has also improved. However, insecurity is a major issue which is holding back confidence,” the poll quoted the Kenyans as saying, citing good infrastructure and job opportunities.

The survey polled about 1,000 upper middle class homes face-to-face in Nairobi and Mombasa based on their wealth like cars, electronics, lifestyles and Internet connectivity.

The study shows that 48 per cent of the emerging affluent consumers are self-employed, reaping from entrepreneurship.

The StanChart survey interviewed 7,000 emerging affluent consumers in seven of its key markets globally including Singapore, Hong Kong, China, India, Indonesia, Kenya and Nigeria.

It shows that Nigerians and Kenyans are most optimistic about their incomes rising in the next one year.

“Six in 10 Nigerians and fewer than half of Kenyans said their household’s disposable income rose in the past year, but almost nine in 10 Nigerians and seven in 10 Kenyans expect it to increase in the next 12 months,” the poll says.

Forty three per cent of Kenyan homes said they would next year travel within Kenya with three per cent to the US and the same number to Uganda.
But Kenyans’ appetite for property purchase is high in the next five years.

“Despite relatively low levels of confidence in their country’s growth prospects, Kenya’s emerging affluent are optimistic about their ability to buy property in the next five years,” the report says citing land and buildings.

“Two-thirds are prioritising this, a much higher proportion than elsewhere,” said the report.