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Only 10% Of Kenyans Spent On Entertainment During Christmas Due To Biting Economic Times

BY Juma · January 28, 2025 06:01 am

A survey by ICEA Lion Asset Management reveals that tough economic times significantly disrupted festive spending in Kenya during the three months to December 2024. Many Kenyans refrained from spending on leisure as the biting economic times became tougher.

About half of Kenyans allocated over 40 percent of their income to basic needs like food, shelter, and school fees, while less than 10 percent went to leisure, entertainment, or home improvements. The majority prioritized what they thought was essential and long-term.

Additionally, 7 percent spent nothing on such activities, and 15 percent excluded travel and luxury expenses altogether. The findings, based on 1,210 individuals and 233 retail businesses, highlight the prioritization of essentials over festive indulgences during Christmas and New Year celebrations.

Carried out during the last quarter of 2024, the survey noted that 61 percent of Kenyans reported no change in income, while 24 percent experienced a decrease and 15 percent reported an increase. Many Kenyans, therefore, had their income remain unchanged.

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Although the majority of individuals reported that their income remained the same, workers in the wholesale and retail sectors reported the highest decrease at 33 percent. This points to the contrary given that it is during such festive seasons as Christmas that the sales are often higher.

Conversely, people working in the Real Estate/building and construction sector saw the highest increase, with 22 percent of respondents reporting an increase in income.

The highest increase was noted among workers in the Real Estate/Building & Construction sector, where 86 percent of respondents recorded an increase in spending. In contrast, workers in Manufacturing and Trade reported a slightly higher decrease in spending at 25 percent.

In response to rising prices, the majority of respondents 30 percent cut out non-essential (discretionary) spending, while 21 percent dig into their savings. Additionally, 20 percent have reduced quantities of essential (non-discretionary) spending.

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Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. (020) 528 0222 or Email: info@sokodirectory.com

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