TIFA Survey: Majority Of Kenyans Have Reduced Spending Amid Rising Cost Of Living

• 87% of respondents to a recent survey have had to slash their expenditures due to the high cost of living
• Regardless of income level, the majority pointed to food as the primary casualty of their budget cuts with 88%
• Other areas that were affected include transport, clothing, entertainment, educational items, and social travel

Elijah Ntongai, a journalist at TUKO.co.ke, leverages more than three years of expertise in financial, business, and technology research, providing profound insights into both Kenyan and global economic trends.

The reality of the economic challenges faced by Kenyans has come to light, revealing that an overwhelming 87% of respondents to a recent survey have had to slash their expenditures due to the relentless rise in the cost of living.

The survey by TIFA, which included participants from various income brackets, showed that the economic burden is widespread, sparing no particular group.

According to the survey, even the more affluent respondents, those earning over KSh 20,000 a month, reported having to tighten their budgets.

Budget cuts on food

Among the respondents, regardless of income level, the majority pointed to food as the primary casualty of their budget cuts with 88% of those earning below KSh 5,000 per month having to reduce spending on food, emphasizing the severe strain on the lowest income brackets.

Other areas affected by budget cuts

While the pattern of reduced spending on food held true across income categories, the second most common area of expenditure reduction differed among respondents.

For those in the lower income bracket, below KSh 5,000, the second most affected category was transport, with 19% reporting cuts.

The same percentage (19%) of respondents in the middle-income category, between KSh 5,000 and KSh 20,000, also had to reduce spending on transport.

Government scores poorly in job creation and public debt management

In other news related to the TIFA survey, the government scored poorly in job creation despite efforts to find jobs abroad for Kenyans.

The government also scored poorly in public debt management (1.8) and reduction of corruption (1.6).

During the campaigns leading to the general elections, William Ruto criticised the previous government for unnecessary borrowing; however, after taking the government, William Ruto has sought loans from the IMF, the World Bank, and other countries.