NAIROBI, Kenya, August 5 – The ICEA Lions has revealed that respondents working in the manufacturing and education sectors have had the highest proportions of improved incomes in the second quarter of 2024.
This was revealed by the Senior Portfolio Manager at ICEA LION Asset Management, Richard Muriithi, during the release of the ‘Second Quarter 2024 ILAM Consumer Spending Index’.
According to Muriithi, respondents working in these two sectors outperformed those in the trade, transport, and logistics sectors in terms of improved incomes.
In the Q2 of 2024, Muriithi spotlighted that 30 percent of respondents working in various sectors attested lower income, which was a 5 percent acceleration from the first quarter of the same year, while less than 20 percent reported a rise in their income.
“Half of respondents indicated static income levels over the last year, while 30% reported lower income and less than 20% saw their incomes rise in the second quarter of 2024 compared to the same period in 2023,” he stated.
“This represented a deterioration from the first quarter of 2024 when 25% of respondents noted increases and decreases in their income respectively,” he added.
Furthermore, ICEA has noted that individual spending trends, especially in the lower middle-income segments, had accelerated by 11 percent in the second quarter of 2024 compared to the first quarter, an increase attributed to the higher cost of items purchased.
During this time, 87 percent of respondents made purchases using their income, while 13 percent relied on credit.
“Individual spending trends improved by 11% in the second quarter of 2024 compared to the first quarter. The additional spending was mainly driven by women and consumers aged between 26 and 35. The rise in spending was largely attributed to higher cost of items purchased,” it stated.
