Buyer confidence grows in Nielsen third quarter poll

Kenya’s consumer confidence in the third quarter ended September grew slightly by three points to hit 104 after remaining static at 101 in the preceding two quarters, according to a consumer research firm Nielsen survey.

The study indicates an increased positivity in spending with data showing that it went up by three points.

Twenty-nine percent of Kenyans surveyed said now is a great time to make purchases.

Kenyans personal finance outlook for next year also improved by two points to hit 59 percent, bouncing to the same level as quarter one.

The survey measures customer’s degree of optimism about the overall state of the economy and personal financial conditions. Nielsen is a global information and measurement company.

“Kenyan consumer confidence is stable and positive, for now. Perceptions have improved about personal finances and readiness to spend, probably as the pressures of the first half expenses were over,” said Nielsen East Africa Managing Director Faith Wanderi.

“However, economic uncertainties, adverse weather conditions and a wide fiscal deficit continue to challenge the optimism of Kenyans.”

The data indicates that fewer Kenyans have spare cash with 27 percent of those interviewed confirming that they are financially healthy, down five points from the previous quarter.

About 75 percent of those with spare cash said they intend to spend the money on home improvements although this is down by seven points from the previous quarter.

Others stated that they would save the spare cash with the rest planning to buy shares and invest in mutual funds.

The survey also noted that increasing food prices emerged as the greatest concern for Kenyans over the next six months.

Locals’ views around job prospects declined by a point, with only 44 percent of consumers viewing their job prospects as excellent or good.