A growing number of Kenyans are moving to cheaper houses, taking their children to cheaper schools and switching to cheaper brands and phones amid economic pressure.
A new survey by financial services firm Old Mutual shows that at least 26 percent of Kenyans surveyed moved to cheaper rented houses, 21 percent switched to cheaper brands and 19 percent moved their children to cheaper schools in the past year.
The Old Mutual Financial Services Monitor survey also reveals that 18 percent of Kenyans surveyed switched to cheaper mobile phone or data options, 17 percent postponed major expenses and 16 percent cancelled or switched to a cheaper TV subscription.
These are just some of the coping mechanisms that Kenyans have adopted over the past six months in the face of financial pressures, the survey notes.
“Kenyans are managing their expenses mainly by moving to cheaper rented property and purchasing cheaper brands. Slightly more consumers are moving their children to less expensive schools, compared to the previous year,” the Old Mutual Financial Services Monitor said.
The survey asked Kenyans from different walks of life if they had tried something new or different in the last six months when it came to managing their money.
Some Kenyans said they had started strict budgeting and keeping records of all household expenses, while others noted that they had cut back on unnecessary expenses such as luxuries, adopted cheaper lifestyles such as eating at home and reduced weekend spending.
Lifestyle adjustments to cope with a tough economy have seen Kenyan households adjust budget items that are central to the running of the household, reflecting the economic squeeze that has hit many Kenyans.
“Consumers are likely to cut down on medical/health insurance, in cases where they have it,” the survey adds.
It notes that in 2024, while the majority or 85 percent of Kenyans surveyed who had insurance made no changes, 5 percent switched to cheaper short-term car or household insurance. This was an increase from just 1 percent of Kenyans who made a similar move in 2023.
Two percent of Kenyans surveyed also said they cancelled car or household short-term insurance in the past year, and the same proportion cancelled life insurance.
The survey notes that amidst tough financial times for many Kenyans as businesses struggle, more workers are taking on side jobs to supplement their employment income.
“20 percent are polyjobbers (supplementing their main source of income with side hustles or additional work). This has remained stable since 2023,” it notes.
This is because the majority of Kenyans consume almost everything they earn to keep up with the high cost of living, with 70 percent of Kenyans surveyed saying they consume all the money they earn each month.
The survey found that 24 percent of women never or rarely have any money left at the end of the month, compared to 19 percent of men.
“Although Kenyans are working hard to make a living, income challenges are clear, as only 3 in 10 manage to have money left at the end of the month, after expenses,” the survey notes.
The survey also found that only 37 percent of Kenyans surveyed said they were financially secure and had enough money to pay for unplanned events.
