Kenyans are expected to spend up to 1.08 times their average monthly income on the upcoming Christmas festivities, a new survey has indicated.
The Survey by WorldRemit, the London-based money remittance firm, revealed a 24 percent increase in Christmas spending compared to last year, highlighting the high costs associated with the festivities.
Similarly, spending on a year-over-year basis is expected to increase by 7.7 percent this year compared to 2022.
The anticipated higher spending for the holidays has been primarily attributed to the higher cost of food items, despite a decrease in the overall inflation rate. The prices of potatoes, tomatoes, and oranges increased by 9.6, 5.4, and 2.8 percent, respectively, keeping food inflation high.
Kenya’s inflation rate dropped to 6.9 percent in October 2023 from 9.6 percent in the same month last year, according to the Kenya National Bureau of Statistics (KNBS).
“Worldwide inflation will also hit Christmas shopping this year. According to our 2023 study, families around the world can expect to spend up to 24 percent more on Christmas this year,” the survey noted.
Household income
The Cost of Christmas Survey, currently in its third year, compares the average expenses incurred on food, gifts, and decorations during the festive season to the average household income across 24 countries.
These countries include Kenya, the United States, the United Kingdom, Nigeria, and South Africa.
The study aims to determine the financial impact of the holiday season on families around the world.
In Kenya, where mean spending on the festivities is estimated at Sh32,611 ($215), 21 percent of the Christmas budget caters for food costs.
The bulk of costs at 56 percent is however dedicated to Christmas gifts while 23 percent has been set aside for decorations.
Cameroon and the Philippines are the countries that will see the largest spike in the cost of Christmas with the season predicted to cost 84 percent and 78 percent more respectively than in 2022.
This data is part of WorldRemit’s annual 2023 Cost of Christmas Study, which observes how the changing macroeconomic environment affects the cost of universal Christmas elements.
