Kenyans spending index drops by 1.5 pc despite growth in GDP

ICEA LION Asset Management Head of Research Judd Murigi, [Photo: Courtesy]

Kenyans spending index has dropped by 1.5 percent in both individual and retail businesses despite growth of GDP in the country signaling  slow circulation of money in the economy.

In a survey conducted by ICEA Lion Asset management group of over 500 respondents between the second and third quarter of 2023, the individuals spending index dropped by 3 percent  while 38 of the respondents noted that their incomes  declined in the same period in 2022.

From the 100 businesses covered in the survey, large business registered  the largest improvement  at 25 pc in sales followed by micro at 7 pc but the medium sized business segment recorded a fall of 18 pc while small business had similar level of sales trends in the third quarter.

While releasing the report, ILAM’s head of research Judd Murigi noted that report cut across the various socio economic cadres in the economy to projects national outlook.

The survey was conducted on spending patterns on individual consumers that include travel, savings and investment and basic commodities like food and shelter.

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