2024 toughest year for Kenyan consumers says latest Ipsos report

A new report released by Ipsos has revealed that 72 per cent of Kenyan consumers believe that 2024 was one of the toughest years yet, with a majority feeling the pressures that had a ripple effect on household budgets. Barnabas Muya, Research Manager for Audience Measurement at Ipsos, Kenya, shed light on the findings in a recent interview with CNBC Africa. Ipsos conducted a tracker survey that covers audience habits and media consumption, incorporating topical questions to gauge public sentiment on various issues beyond media consumption. The survey, which involved a thousand individuals from all counties in the country, highlighted widespread dissatisfaction with the economic situation in Kenya. High living costs emerged as a major concern, exacerbated by political instability and its impact on sectors like FMCG and retail, leading to closures and job losses. The survey also revealed disparities in dissatisfaction levels based on socio-economic status, with lower-income groups bearing the brunt of economic challenges. The high dissatisfaction among Kenyan consumers can be attributed to a combination of factors, including unemployment, lack of disposable income, and rising taxation. Affluent households were better positioned to weather the storm compared to lower-income households, which faced greater difficulties in making ends meet. Governance issues, such as new levies for housing and health insurance, further strained household budgets, compounding the hardships faced by consumers in 2024. Looking ahead to 2025, the outlook appears mixed, with younger people more optimistic about the future compared to the older generation. While there are signs of hope in areas like affordable fertilizer and food prices, concerns persist around governance and policy stability, which could impact investor confidence and economic growth. Political uncertainties in Kenya continue to weigh on the minds of consumers, with corruption, unemployment, and governance issues being central concerns. The government's response to these challenges will be crucial in shaping the economic landscape and restoring confidence among consumers. As Kenya navigates through a year of balancing hopes and uncertainties, the Ipsos report serves as a valuable tool for understanding the evolving economic dynamics and sentiment among consumers.