Kenyans are selling off their assets and skipping meals to cut down on expenses as they struggle to make ends meet in 2024.
According to the Tala Money March report, these are some of the resolutions that Kenyans have been forced to resort to as their financial situation worsens.
Further, the report detailed that consumers are generally experiencing lower incomes in 2024, noting that only a quarter (26%) of consumers have had their income increase in the last 6 months.
For a third of the consumers (37%), financial situations have worsened compared to the 30% recorded in 2023.
At the same time, about 1 in 5 (21%) of those with higher incomes feel that their financial situation has worsened despite their increase in earnings.
“Furthermore, a similar proportion (23%) whose income has remained the same feel that their financial situation has worsened, such consumers are prone to taking loans to survive the tough times,” the report read in part.
Also Read:A Percentage of Tala Borrowers Have Adopted Saving Culture
Other Ways Kenyans Are Surviving 2024
On the other hand, the report detailed that some people are moving their children from private to public schools when they can no longer borrow loans to pay school fees while others have resorted to reducing the amount they are spending on non-essential items.
Also, some Kenyans are working overtime or taking an additional job to make ends meet, taking loans, or using up their savings.
“Slightly over half (55%) of consumers have spent more in the last 6 months. Therefore, they are forced to cut down on expenses and reduce spending on luxury items.
“However, about a quarter (23%) are utilizing their savings to cope, implying consumers are generally saving,” added the report.
Also Read: 3 Survival Tips to Avoid Going Broke in 2024
Spending Behavior, Emergencies and Expenses
The Tala Money March report also indicated that about two-thirds (66%) of consumers can raise Ksh7,000 in case of an emergency.
This amount, the report notes, is lower compared to 2023 and 2022. The “top sources of raising this amount would be from reducing expenses and tapping into savings.”
However, about a third (33%) of the consumers would opt to borrow, either from social circles or other lenders.
A higher percentage of this is taken by utility bills which include rent, electricity, internet and others.
Compared to 2023, Kenyans have cut down on their expenses like clothing and travel or outings, which are considered a luxury. Also, they reduced the amount spent on contributions including harambees, fundraising, or helping family and friends.
Despite the financial challenges, Kenyans have continued saving in different ways including chama, Sacco, fixed deposit accounts and others.
