Kenyan consumer spending improved between September and December last year buoyed by Christmas festivities and an improved economic outlook.
The Nielsen Consumer Confidence Index (CCI) score for the period rose eight points from previous quarter to 102, revealing an improving consumer mindset and lessening uncertainties.
“Consumer confidence returned to positive levels in quarter four in Kenya as a result of an overall uplift in the scores on job prospects, personal finances, and readiness to spend,” said Nielsen East Africa managing director Faith Wanderi.
“The marginal decline in inflation and the decrease in food prices for some staple products, coupled with a resilient private sector could have boosted consumer sentiments in the last quarter.”
According to the survey, 65 percent of Kenyans polled described the state of their personal finances over the period as excellent or good— up by 7 points from the third quarter of last year.
This optimism is expected to spill over into this year.
“There is also a more positive outlook in terms of Kenyan consumers’ immediate-spending intentions, which has increased to 29 percent of respondents (up from 22 per cent in Quarter 3, 2018) who say now is a good or excellent time to purchase what they need or want,” says the study.
“The view around job prospects improved by a healthy six points over the previous quarter to 50 percent of consumers viewing them as excellent or good and a reduced 43 percent — down from 49 percent in the previous quarter — considering them as not so good or bad.”
Ms Wanderi said the overall improved positive sentiment could have been pushed up by Christmas spending.
“The year-end festival spirit could also be a reason for the optimism seen among Kenyan consumers and we hope that this sentiment continues into 2019 and translates into spend,” she said.
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