Bursting into their careers shortly after university means that they enjoy high disposable income long before they have any meaningful financial obligations.
The demographic is high on expenditure and low on savings.
Analysts argue that young people have redefined luxury; they prefer experiences as opposed to mere items.
For many Kenyan millennials, the world is their oyster. When it comes to sampling life’s best delights, they spend a fortune.
Bursting into their careers shortly after university means that they enjoy high disposable income long before they have any meaningful financial obligations.
This way, the largest fraction of their money is frittered away on random expenditure.
Even more interestingly, some of the working millennials are still unable to fully support themselves, and often expect their parents to tide them over.
Viola Saiya, 23, personifies a remarkably free-spending lifestyle led by the vast majority of millennials in Kenya today; a demographic that is high on expenditure and low on savings.
A social media influencer, Viola earns between Sh80,000 to Sh100,000 per month through promotional gigs.
“This job is not consistent enough. The pay is hardly enough to get by. But I need more than just survive,” she says.
“I’m lucky my parents always have my back. I get enough facilitation [pocket money] from them every month. And I am glad I can stay with them for as long as it takes,” she says.
Viola’s dainty taste for fine things is apparent. The most expensive item in her luxury collection is an iPhone 8 Plus smartphone worth Sh110,000.
Her most expensive pair of shoe costs Sh15,000 and she has three such pairs.
Sarova Whitesands Beach Resort, Tamarind and Nyali International Beach Hotel at the coast are her preferred entertainment spots.
“I go to the Coast every month where I spend an average of three days per visit,” says Viola who is joining the Kenya School of Law this year.
For Viola, hanging out with friends is a priority and a routine she observes with religious zeal.
“We meet on a monthly basis to catch up on our lives at Urban Eatery or at any Artcaffe or Java outlet depending on our preference. I’m glad to foot the bill most of the times,” she says.
On a single outing with her friends, Viola says she spends a minimum of Sh5,000, which to her “is a small expenditure”.
Fly business class
Viola spent her Christmas in Cape Town, South Africa, visiting famous tour destinations such as Robben Islands, Table Mountain and Cape Point.
Before that, she had stayed in Abu Dhabi for a week.
“My goal is to visit at least three different countries every year. I wish to visit as many places in the world as possible. I have the time and few responsibilities,” she says.
Viola Saiya at a resort at Table Mountain in South Africa. PHOTO | Courtesy
Ken Muli, 27, is a young insurer in Nairobi. For someone working in the family business, Ken is entitled to handsome allowances which allows him to tour the region.
“I go to Zanzibar or Kigali most of the weekends. I have been to Seychelles more than five times. I prefer flying business class because it offers more comfort,” he says.
Closer home, Diani Reef Beach Resort and Spa in Kwale is Ken’s favourite spot. He cruises the streets of Nairobi in a Porsche 718 Cayman.
Yet for Ken, saving money to start his own enterprise is out of question.
“I don’t see the sense in running a separate entity while my family is already doing well in insurance. I endeavour to grow the family business and thrive from within,” he says.
A number of Kenyan young men and women do not necessarily share the same dreams as their parents who may be wealthy but are less flamboyant. They are not conservative spenders and have no qualms living off their parents even if they are financially stable.
Hazel Wambui is a young marketer in Nairobi. The 23-year-old has been staying at her parents’ house since she graduated in 2016. After her graduation, Hazel was fortunate to secure a job immediately. But even with her decent pay, she has stayed on.
“I always find myself coming back home even after moving out. I don’t see the need to stay alone when my folks [parents] have no problem with me around,” she says.
Cab rides are an essential part of Hazel’s lifestyle.
“I take a taxi between three to five times per week, mostly for convenience. I spend an average of Sh900 for each ride. Otherwise my boyfriend drops me at home,” she says.
Hazel buys her shoes online or from Backyard Shoez, an upscale footwear store in Nairobi, spending an average of Sh4,000 per pair, sometimes every month.
Her thriftless manner though often puts her at cross purposes with her more frugal parents.
“Every time I buy a classy pair of shoes, a dress or a handbag, or acquire an expensive hairstyle, my mother always demands to see the receipt. She complains but every time I assure her that I’m putting my money into the right use,” she says.
For Hazel, lack of financial obligations at home allows her the liberty to spend her income as she pleases.
Early this month, she hosted her friends at a lavish resort in Naivasha, leaving her Sh60,000 out of pocket on a weekend.
“I am only two years into my career. I hope to have as much fun as I can before financial responsibilities start running me over. My mid and late 20s will definitely be different,” she argues.
“I recently bought my boss a smartwatch worth Sh4,500. I don’t own one yet but I will soon get myself one,” she says.
Maureen Koech, an actress, admits that without financial support from her parents, she would be on her knees.
“I spend money on my personal effects. But my parents take care of most of my financial needs,” she says.
Whenever she runs into something she can’t afford to buy, her parents are always obliged to send her money through M-Pesa. Her parents also service her debit card.
“I love nature tours and hiking. On weekends my friends and I visit animal parks or go for long haul drives to Nanyuki or Nakuru,” she says, adding that these expeditions allow them to catch up as, most of them are busy working during weekdays.
Actress Maureen Koech. FILE PHOTO | NMG
Maureen recently acquired a JBL Bluetooth speaker worth Sh35,000. While her parents encourage her to exercise financial prudence, they do not scrutinise her expenses, she says.
“I am not very extravagant, yet I can’t deny myself fine things if I have money to spend. My parents may not approve my spending habits, but at the end of the day their preferences and mine are different,” she says.
“There is so much pressure in our generation. When your friends have delightful gadgets, you strive to acquire the same to belong. Sometimes this means foregoing other necessities or disrupting your budget.”
Luxury spending
As an actress, Maureen argues, the society expects her to lead a certain lifestyle and to accessorise in elegance and own high-end things that she may not afford.
Only two to five per cent of her earnings go to savings.
Millennials may become the largest spending generation in history by 2035, according to “Five Luxe Trends for 2015” a paper authored by marketing expert Pam Danziger.
Consequently, major global brands including restaurant chains, clothing powerhouses and other makers of swanky products have set up multi-million businesses in Kenya to tap into the luxury propensities of young Kenyans.
Analysts argue that young people have redefined luxury; they prefer experiences as opposed to mere items.
Curiously, for millennials, luxury shopping is more fulfilling than the utility that comes from using the items.
A survey conducted by Ipsos Connect in seven African countries (including Kenya) between 2015 and 2016 showed that young Africans’ appetite for luxury surpasses that of their European counterparts. The research sampled 1,389,000 millennials.
The findings indicate that 66 per cent of these youths own one of the three main devices including a smartphone, a laptop or a tablet. Of these, 12.5 per cent own a wearable device such as a smartwatch.
