Economic woes supersede health concerns over Covid-19, survey says

The Boston Consulting Group (BCG) has in a study found that an overwhelming majority of Kenyans are currently concerned about their economic woes in the wake of Covid-19 than its health repercussions.

A recent survey carried out by the group established that 92 per cent of Kenyan consumers surveyed were experiencing a negative impact on their household income with a paltry seven per cent saying they felt no negative effects on their household income.

The survey conducted in May says monthly mortgage and rent

Payments top the list of concerns, followed by utilities, school fees, short-term loan repayments, and support for extended family members.

It states that people worried about being unable to meet their financial obligations stood at 68 per cent by the month of May.

That consumers spending habits have changed considerably is exhibited in their preponderance to seek short term credit loans, more so those provided by mobile money operators such as M-shwari and KCB M-Pesa accounting for a whopping 88 per cent, points out the survey.

“As consumer prices rise, spending patterns are shifting away from discretionary products and services towards those deemed essential.”  Indicates the survey.

According to the report, a third of those surveyed confessed to being deep in financial trouble while 40 per cent were financially vulnerable.