Few options for Christmas Day

By Peter Muiruri

All work and no play makes Jack a dull boy, so goes the ages-old saying.

As the holiday season peaks, some fun and play sounds like a good idea to many. It is a time to tap oneself on the back after a year of hard work and toil.

But to many Kenyans hard hit by the economic crisis, fun is the last thing on their minds. It’s just a week to Christmas Day, and many have already made up their minds on how they’ll spend their time.

"It will be unwise to spend my little savings on just a few days of the year with the month of January just around the corner," says John Osogo, a watchman in Langata Estate, Nairobi.

Onsogo’s views are shared by Timothy Kamau, 25, who hails from Tetu, Nyeri. A holder of a diploma in Information Technology, Kamau is still jobless and has no plans to travel. The last time he took a holiday was four years ago, while still in high school.

"With the rising cost of living, I won’t be spending. If I get some little cash, I may have to go and see my relatives in Nyeri," says Kamau, who was whiling some time away at Nairobi’s Uhuru Park.

Even though the national economy has performed relatively well since 2003, financial experts predict many Kenyans will not be changing their holiday habits soon.

Traditionally, millions travel to their upcountry homes to stay with their extended families, while a few travel to the coastal towns. Public beaches are predictably crowded.

Then there are those with no plans to spend a dime holidaying outside their city habitats, thanks to the plummeting shilling.

Aly Khan Satchu, a financial analyst with Rich.co.ke feels the country’s economy is not out of the woods yet. He says the dwindling purchasing power of Kenyans will obviously affect their holiday spending this year.

The current upward adjustment of the basic lending rates by Central Bank with the expected ripple effect from the commercial banks has conspired to deny majority of Kenyans a good time this December.

Cash that would otherwise have gone towards financing a good holiday might be channeled towards a loan repayment.

Satchu says such dynamics still affect the common man who may not have loans to repay but still desires to spend some money this season.

He says: "The Inflation rate peaked just under 20 per cent and therefore, in essence, the 100 shillings we had last year is worth 80 shillings this year. I think as a society we are biased towards consumption. We’ll therefore have to practice some form of self-restraint this holiday season."

Satchu speaks for many in the low-income group that consists of office clerks, watchmen and women, jua kali artisans and casual labourers. Taking a holiday for this group is akin to throwing hard earned cash down the drain.

In the middle of such gloomy atmosphere, there are still another group of Kenyans who choose to feast and treat themselves well. They do so in a big way.

LOCAL HOLIDAYMAKERS

According to research by Investment News Kenya, an independent online magazine that provides information on investing, living and traveling in Kenya, some local holidaymakers spend up to Sh500,000 in trips to foreign holiday destinations.

About 90 per cent of high-end Kenyan holidaymakers usually head for the beaches come December. Most of these prefer the coastal resort cities of Mombasa, Malindi while a small number head farther south to Zanzibar and South Africa.

These have no problem spending at least over Sh350,000 for five nights at the top coastal resorts.

According to Muli wa Kyendo, the Investment News Kenya editor and publisher, going on holiday is a predictable matter that should not catch anyone by surprise.

SPECIAL ACCOUNTS

He says: "What we believe is that the current hard economic times will not significantly affect Kenyans’ spending on the Christmas festivities. A large number of Kenyans save in special accounts for holidays while still, many others have joined the many merry-go-rounds to save for holidays."

For some, saving for end of year holidays starts in January with a family of about four making a monthly saving of up to Sh200,000. These are usually middle-income earners.

"Come Christmas, the family heads for the beach at the Kenyan coast and spends, within a short span of four short days, a whooping Sh200,000," says the report.

Such money is usually deposited in special accounts. During this period, a meager seven per cent among the high spenders will tour the country’s national parks and reserves.

On the other hand, low income groups in the city are content to sample the many recreational spots that Nairobi has to offer.

"Arboretum and Uhuru Park get high priority. At Uhuru Park, a family can roam freely in the expansive gardens or enjoy a boat ride," says the report.