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Kenyans Moving to Cheaper Brands as Inflation increases

An Old Mutual Financial Service survey shows that Kenyans are moving to cheaper brands and cheaper rented property as a way of managing expenses resulting from high inflation in the country recently.

More males at 25 per cent have paused contributions to their investments compared to female counterparts at 19 per cent.29 per cent of women sampled have moved from one rented property to another cheaper rented property compared to males at 29 per cent.More than male counterparts, females have cut down on house help and switched to cheaper brands to beat inflation.

“To cope with financial pressures, females in Kenya have dipped into their savings and borrowed from their savings clubs more than males,” noted Old Mutual in the survey. “18 per cent of the females have fallen behind chama or savings club contributions compared 12 per cent males.”

To adapt to the high cost of living, The number of women who have relocated to rural areas from towns are also higher than the male counterparts. 9 in 10 Kenyan consumers are earning less than or the same as they did prior to Covid. More females are earning significantly less than males. Over half of females in Kenya own micro businesses (5 or less employees). Most of these businesses are financed loans from Chama’s, personal savings and business profits.

Further, the reprot shows a third of females in Kenya rely on a salary, with just over 14 per cent supplementing their incomes by getting a side hustle, contract work, or second job above their regular job. There is also a very strong reliance on chamas amongst females.

Kenya National Bureau of Statistics (KNBS) put February inflation at 6.3 per cent, marginally lower than the 6.9 per witnessed in January 2024. The drop is attributable to a reduction in food and fuel prices.

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