Kenyans optimistic as economy rebounds

By John Oyuke

Kenyans consumers have become slightly more optimistic about their current economic situation, and expect better economic times in the next six months, as the business environment improves, a new consumer confidence survey suggests.

The survey further indicates that the same bullish feeling applies to their perception of prevailing business conditions.

The TNS Research International survey found the overall consumer confidence index now stands at 117, a 17-point increase over the benchmark of 100 recorded last year.

Most significant improvements in the sentiments were in Nyanza, Rift Valley and Western provinces.

However, according to the survey conducted last month, about 82 per cent still feel their economic circumstances are not good.

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There was a small, but significant, improvement since October last year, with 17 per cent saying that their economic circumstances are good, an increase from last year’s six per cent.

Men are more positive about their current economic circumstances than women. The survey also indicates that the positive feelings are highest in Coast Province, followed by Rift Valley and Western.

"Younger people tend to more positive about their current situation than older people. People’s perceptions have also improved when they look into the future," read the survey report in part.

Close to 46 per cent expect their economic circumstances to improve in the next six months, compared with 33 per cent who said the same in October last year.

Most Kenyan’s feel that business conditions are poor at the moment, but this proportion is lower than last year, indicating some improvement in perception of the country’s business condition.

According to the research findings, the results showed that there is a direct co-relation between the way Kenyans view their own economic circumstances and the way they view business conditions in general.

Kenyans are more optimistic about business conditions than last year, with 74 per cent saying business conditions are generally poor at the moment, compared to last year’s 81 per cent.

Respondents from Western are most negative (82 per cent agree) and those from Eastern are least negative (65 per cent agree).

Nyanza, which was the most negative last year, has improved their opinion about business conditions, with only 76 per cent saying business conditions are generally poor, as compared to last year’s 94 per cent.

In Nairobi business conditions are now considered grimmer (from 64 per cent last year to 72 per cent this year).

Looking into the future, majority of Kenyans believe that future business conditions will be poor, but the outlook is a bit better than in October last year.

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Almost half of them (48 per cent) compared to last year’s 36 per cent expect conditions to improve in the next six months.

Kenyans aged 25-34 years are more positive about the future than the other age groups.

On employment, over 90 per cent of Kenyans believe that jobs are hard to find at the moment

There has been a slight improvement in future outlook in this respect, according to the TNS Research International, a local market and social research company.

About 22 per cent now feel that jobs will be easier to find in the next six months, compared with 15 per cent in October last year.