Gen Zs have emerged as the biggest consumers in Kenya, and are to spend Sh4.4 trillion this year alone.

The latest World Data Lab (WDL) research revealed that more than 17 million of Gen Z consumers spent most of their money on goods and services, with the majority going towards food, housing and transport services.

It projected that Nairobi, Mombasa and Kisumu will command the majority of consumer spend in 2025, with Meru, Mombasa and Thika emerging as the fastest growing centres for spend by 2035.
African consumer

WDL released the new data in its latest report entitled “Gen Z and the Future of the African Consumer”, which traces spending throughout the world and Africa. The insights present a snapshot of the shifting dynamics in African economies as Gen Z becomes the richest generation across the continent.

Nairobi led the Gen Z spending in Africa with an expenditure rate of $10.1 billion, while Mombasa led the Gen Z spending growth rate by 8.2 per cent.

On the other hand, urban areas including Meru, Thika and Ruiru were listed as emerging hubs for Gen Z spending and will experience the fastest rates of spending growth to 2035.

Additionally, Kenyan Gen Zs also emerged as the wealthiest generation compared to the previous ones, and will continue to do so until 2040, despite the Gen Alpha gaining popularity at a rapid rate. “As a group, Gen Z is currently the largest economic bloc who have access to more disposable cash than their parents but who also have higher aspirations for their spending,” said Wolfgang Fengler, CEO, World Data Lab.

Dynamic needs

The data further projects that for the coming 10 years, Africa will continue to be a Gen Z continent, a different dynamic compared to the other continents where millennials and Gen X (born between 1965 and 1996) still reign supreme.

“Across Africa, Gen Z will spend the most out of all generations in Africa with $801 billion being consumed in 2025, which will expand to more than $1 trillion after 2032,” read part of the report by WDL.

As the younger generation continues to influence markets and industries, companies need to prioritise key aspects such as product development, communication channels, and consumer experiences to align with the Gen Zs. WDL wants businesses to rethink their strategies as the younger generation dominates consumer spending.

According to the firm, both local and international brands need to urgently re-strategize their brands in order to align with the needs of the Gen Zs who have emerged as the major consumers in the world.

According to findings from the firm, Gen Z, the generation born between 1997-2012, are shaping the consumer landscape, thanks to their tech-savvy nature, need for fast services, and personalized experiences.

“Our insights reveal the immediate need for brands and companies to adapt their strategies to meet the needs of this younger consumer who now accounts for the majority of spending across Africa,” said Fengler.

“Our insights reveal the immediate need for brands and companies to adapt their strategies to meet the needs of this younger consumer who now accounts for the majority of spending across Africa,” he continued.

World Data Lab offers a data-driven view on how generations are shaping global spending patterns that leverage the World Data Pro platform, a powerful tool that can delve into spending at a neighbourhood level and provide projections up to 15 years into the future.

WDL is a leading data analytics company specializing in global consumer spending and demographic forecasting.