An estimated 17 million Kenyans are operating on their last cash reserves set to be depleted by August 6, according to the latest report released by Geopoll titled Financial Impact of COVID.
The Global mobile research leader conducted a study in five countries in sub-Saharan Africa: Kenya, Nigeria, Côte D’Ivoire, Mozambique, and South Africa, in a bid to highlight the impact of the Covid-19 pandemic.
Asked how long they expected to be able to pay for basic expenses like rent and food, 37% of the Kenyan respondent's revealed that they only had enough cash to last them for a maximum of 30 days.
To compound the issue even further, 36% of Kenyans revealed that their main source of money to cover basic expenses would come from loans/credit, with a mere 16% relying on salaries.
On the other end of the scale 4% of Kenyans, approximately 194,000 people, revealed that they have cash reserves that could sustain them for over 5 months.
Due to harsh economic effects of the coronavirus pandemic, Kenyans have shifted their top payment priorities, with 63% currently ranking food-related spending as their first obligation.
Rent came a distant 2nd in the new list of priorities, with only 24% of the respondents ranking it as their number one priority.
Notably, vehicle loans and credit card payments came last on the list with 2% and 1% respectively in terms of the number of people who still had them as key priority payments.
Worryingly, 31% of the respondents indicated that they were uncertain of regaining their jobs once the pandemic eased off, with 51% expressing uncertainty in work resumption.
Data collection for the survey occurred from June 11, to July 6, with some countries completing data collection earlier than others.
It is estimated that almost half the world’s population is at risk of job loss due to COVID-19, with the pandemic expected to cause the largest recession in over 50 years.
Economies classified as ‘emerging’ and ‘developing’ by the World Bank, which includes those in sub-Saharan Africa, Asia, and Latin America, are likely to be hardest hit, the report further indicated.
Closer to home, in sub-Saharan Africa, it has been predicted that coronavirus will result in the first recession within the region in 25 years.
