Kenyans are still having it rough in making their daily purchases of goods they use on a day to day basis as a result of inflation with many of them saying that food and groceries costs have increased in the last six months. This is according to a survey done by Tala, one of the digital lenders in the country.
Results from the survey suggest that 80 percent of Kenyans feel that there is an increase in the cost of putting food on the table while 83 percent report that their overall living expenses have increased in the first half of this year 2024.
The survey further revealed that many Kenyans (46 per cent of the respondents) borrowed to pay for school fees for their children, so as to meet the requirement of having them in school. It also found that 44 per cent borrowed to buy stock for already existing businesses while 26 per cent borrowed for the day-to-day living needs.
Additionally, 20 per cent of Kenyans borrowed for medical expenses for their families and friends while 19 per cent borrowed for emergencies.
On the amount borrowed from a single lender, 24 percent of Kenyans revealed that they borrowed an average loan of between Ksh 10,000 and Ksh 20,000 while 2 percent borrowed amounts below Ksh 1,000.
23 per cent of respondents borrowed between Ksh30,000 and Ksh50,000, 19 per cent borrowed between 20,000 and Ksh30,0000. 15 per cent borrowed between Ksh5,000 and Ksh10,000 while 11 per cent borrowed above Ksh50,000.
According to the survey, the high cost of living forced many Kenyans to cut back on their expenses in order to manage the ballooning expenses
The respondents, who participated in the survey, noted that cutting on unnecessary expenditure helped them improve their financial well being.
In order to bridge the high biting inflation costs, Kenyans said that they were forced to borrow from digital credit providers to bridge the gaps with 31 per cent reporting that they started side hustles as 20 percent started their own businesses to wade through.
“Looking at consumer credit trends defining the first half of this year, matters of economic equity come into sharp focus as quick access to funds can mean the difference between financial stability and hardship for many households” stated Annstella Mumbi, General Manager, Tala.
Of the interviewed, 80 percent of Kenyans felt confident in being able to manage their debts while 9 percent did not know whether they could or not as 4 percent said they were not comfortable at all to service their debts.
According to Tala, the survey was meant to help Kenyans be able to survive through the current difficult financial conditions experienced in the country.
“Today’s financial infrastructure doesn’t work for most of the world’s population, that is why we remain committed to applying advanced technology and human creativity to solve what legacy institutions can’t or won’t. We not only enable our customers to survive this period but also empower more people to unleash their economic power” added Mumbi.
The survey which involved 2,637 correspondents concluded that most Kenyans remained confident in their ability to repay their borrowed loans even as inflation continues to bite.
