A new nationwide survey published by the Stahili Pulse Report has revealed that a majority of Gen Zs in Kenya remain deeply concerned about the rising cost of living, with most expecting retail prices to continue increasing in the coming months.

According to the report, 66.4 per cent of respondents, predominantly from the Gen Z demographic, believe retail prices will go up, while 23.1 per cent expect them to go down. Only 10.5 per cent think prices will remain stable.

Gen Z, which accounted for more than half (52.5 per cent) of the 1,209 survey participants, expressed some of the strongest views on the economy’s direction. Many in this age group rated the government’s economic performance poorly, with most describing it as either fair or poor.

While the majority of Gen Z participants expect family incomes to rise, reflecting a degree of personal optimism, they also foresee continued pressure on household budgets as the prices of essential goods climb higher.

The survey also revealed that 67.9 per cent of respondents expect interest rates to increase, a development they believe could make access to credit and entrepreneurship more difficult. This sentiment aligns with their broader view that economic recovery has been slow and that business conditions have worsened compared to six months ago.

Interestingly, despite this economic pessimism, 48.1 per cent of Gen Z respondents believe the business environment will improve within the next six months.

This suggests that while they are dissatisfied with current conditions, they remain hopeful about the country’s medium-term prospects, especially if key reforms and job creation programmes target youth.

MPC report on inflation

These come days after a report from the Central Bank Monetary Policy Committee (MPC) projected the country’s inflation to remain at 5.25 per cent until the end of the current economic cycle.

The MPC report further stated that overall inflation will stay below the midpoint of 5.25 per cent. This has been supported by the stable prices of basic commodities and the continued stability of the exchange rate.

The committee has also forecasted a decline in the global inflation rate in 2026, attributed to lower fuel prices and reduced global demand. The stability is further linked to the resilience of the Kenyan economy in the second quarter of 2025, supported by recovery in the industrial sector and steady growth in agriculture.

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