Nairobi, Kenya Jul 4 — Kenya’s consumer sentiment is on an upswing according to the Consumer Confidence Index (CCI).
The CCI findings show that the consumer sentiment in Kenya increased from 103 to 108 in the first quarter of 2016.
Recessionary sentiment grew around the world with six in 10 global respondents believing their nation’s economy was in recession in the first quarter – an increase from 55 per cent in the fourth quarter of last year and the highest level since 2012.
Job prospect sentiment increased with 55 percent of respondents polled taking favourable view up 10 percentage points from the previous quarter, with only 32 per cent of respondents categorising their job prospects as not so good or bad, as compared to 39 per cent in the previous quarter.
Sentiment about personal finances and immediate spending intentions is also on the rise, with 65 per cent saying they’ll be excellent or good within the next 12-months and immediate-spending intentions at 36 per cent. Both these figures have increased, rising seven and two percentage points, respectively.
The majority of consumers in Kenya remain cash strapped, with 65 per cent of respondents saying they did not have spare cash. Among those who did claim discretionary funds, saving continued to be a priority for the majority of Kenyans at 86 per cent, followed by home improvements at 76 per cent and investing in shares of stock or mutual funds at 69 per cent.
In light of this data, Nielsen East Africa Managing Director Jacqueline Nyanjom commented saying businesses need to ensure they deliver relevant products for strained wallets to ensure retail sales growth.
“Consumers are more buoyant about their personal circumstances as a result of favourable economic pointers for the forthcoming year,” she said.
The Nielsen Global Survey of Consumer Confidence and Spending Intentions was conducted between March 1 and 23, and polled more than 30,000 online consumers in 61 countries. Interestingly, Kenya, Ghana and Nigeria are the only countries in the world whose data is compiled from a mobile survey methodology.
Global consumer confidence edged up one index point to 98 from the fourth quarter of 2015, as uneven growth trends persisted in many advanced and developing economies. While 11 countries out of 61 saw their confidence increase five or more points, relative to a year ago, 21 saw confidence fall five or more points compared to the first quarter of 2015.