NAIROBI: A survey by a global consultancy shows Kenya’s consumer confidence for 2017 dropped significantly towards the end of last year, eroded by concern over inflation, the credit crunch and unemployment. An index by Nielsen Holdings, an international performance management company, shows buyer confidence slumped by 11 points in quarter four of last year compared to the previous quarter. The firm, however, noted that this is still a positive result as it is above the 100-point level at 109 that indicates overall optimism within the consumer confidence ranking, despite the drought in the country which has resulted in rising food prices.
“Compared with some of the more volatile economies in Sub-Saharan Africa, the Kenyan economy is growing at a relatively strong and stable rate, with GDP growth of 6.2 per cent, and Kenyans are generally feeling positive about the future,” said Nielsen East and West Africa managing director Abhik Gupta. “However, in the fourth quarter, growth and projections for 2017 slowed, fuelled by the implementation of capped interest rates, rising food inflation and unemployment concerns, particularly among the young. Nearly one in every five Kenyan youths of working age is unemployed.”
