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Kenyan consumers’ happiness levels stands at 51 per cent, showing a mixed reaction to the current economic realities in the country, a new study shows.

The consumer pulse study by Pierrine, a Pan African marketing research and strategy firm says happiness is mainly driven by gratitude for good health and existing strong family ties, while unhappiness was caused by poor leadership, increase in the cost of living including foodstuff, transport, planned increase in taxation, reduction in household income and unemployment.

The study notes that 49 per cent of Kenyans said their household financial situation got worse over the last six months, reflecting the impact of current headwinds on consumers. Out of this, 25 per cent reported a decline in family income, 19 per cent said they were unemployed while 17 per cent complained of the impact of weather on their crops, livestock and property.

“Kenyans cited current rising cost of living, prevailing corruption amongst the leadership and mounting pressure on their available disposable income as reasons for being worse off compared to six months ago,” the research notes.

The face to face survey was done in Nairobi, and involved over 150 respondents. 48 per cent were men, while 52 per cent women. An estimated 39 per cent were 18 to 24 years, 33 per cent 25 to 34 years while 28 per cent aged 35 years and above.

According to the research, 27 per cent reported a positive change in their financial circumstances. 14 per cent said they were earning money through foreign exchange, while 12 per cent were supported by friends and family. 10 per cent said through employment.

Those surveyed were ooptimistic about the next 12 months, driven by newly imbibed healthy behaviour, starting new side hustles and the possibility of achieving set goals. The research also noted a shift in consumer spending patterns, with Kenyans spending more on local travels, beverages, eating out, clothing, beauty products and medicine.

In the last 12 months, the Kenyan government has steadily raised fuel prices, with a litre retailing at Sh211 from Sh133 as of September 2023, an increase of about 63 per cent.

In response to the increased fuel prices, the findings of the study noted that Kenyan consumers are now exploring more affordable transportation options, reducing household expenditures and spending more time at home.

To better manage their finances, consumers have also resorted to avoiding debt, budgeting, investing and setting financial goals and only trying new products if the price is within their price range and reach as well as delivering on the job to be undertaken.