A trader gathers chicken at Katito trading centre before transporting them for sale in Kisumu on December 20, 2013. The price of chicken has gone up to about Sh800 in Kisumu as many people prepare for Christmas celebrations. Photo/JACOB OWITI
A Christmas without gifts! That is the verdict of a new study released Friday on how Kenyans plan to spend this year’s holidays.
Most families will spend more than half of their budgets on food and only three per cent on gifts and cash handouts, the study by Consumer Insight Africa says, adding that only nine per cent will be spent on new clothes.
“Half of Christmas expenditure is on food. Further, expenses on entertainment and travel will go up while money spent on clothes will decline,” the study says, and points out however, that most Kenyans are hoping for cash gifts more than anything else.
It says that 24 per cent of Kenyans, especially men and the elderly, would rather receive money, while most females would go for shopping vouchers and holiday trips. Under-30-year-olds would prefer electronic gadgets such as laptops and gift vouchers although, as the study shows, most families are not prepared to splash out the cash.
University of Nairobi economist Joy Kiiru attributes this to inflation and the recent introduction of VAT on previously exempt goods, which, she says, will make this year’s festive season less indulgent for Kenyans because they have to cope with higher prices of goods and services.
“The economy is going through tougher times than last year, and this has made things very difficult for Kenyans. For most people, holiday getaways, entertainment and parties are luxurious activities that would rather be left out of the festivities,” Dr Kiiru said.
The study shows 42 per cent of Kenyans will visit their rural homes over Christmas compared to 51 per cent last year.
Although local tourism is gaining popularity, travelling to rural homes is still preferred during Christmas holidays. “Attending church services, throwing parties and travelling to rural homes are still popular but their attraction is declining,” the study says.
Christmas budgets will be more than last year although the social economic class with lower income will spend less.
About 53 per cent will spend more money than they did last year, 36 per cent will spend less than last year while about 11 per cent will use the same amount as they did last year.
“Those with higher incomes will have to spend more because the general cost of goods and services has gone up. On the other hand the less fortunate will choose to spend the bare minimum in order to finance their other needs hence the drop in spending,” Dr Kiiru says.
Only three per cent will travel outside the country — half of those who usually do so on average — owing to the higher cost living and lack of money.
Consumer Federation of Kenya (Cofek) secretary-general Stephen Mutoro said ordinary Kenyans will have a very hard time this season trying to make merry with constrained budgets.
“It will not be easy. In fact, most consumers will opt to carry on with their normal lifestyles because they can’t afford elaborate celebrations,” Mr Mutoro said.
The study says 61 per cent of Kenyans will not celebrate as they would have wished to due to financial constraints while 57 per cent will hold back due to security concerns.
A third of Kenyans’ celebrations will be disrupted by bad weather, while about 20 per cent feel that congestion in public transport will interfere with their celebrations.
“The economy is going through tougher times than last year and this has made things very difficult for Kenyans. For most people, holiday getaways, entertainment, parties are luxurious activities that would rather be left out of the festivities,” Dr Kiiru said.
November inflation rate fell marginally to 7.36 per cent compared to 7.76 per cent in October, driven by lower fuel prices, but the cost of goods and services remains high despite this.
Inflation is expected to average higher for December given that the cost of fuel has gone up marginally after last week’s upward review by the Energy Regulatory Commission.
In Nairobi, the price of Super Petrol per litre was capped at Sh109.28, after increasing by 28 cents while diesel is now selling at Sh104.52 per litre, 41 cents higher than last month. A litre of Kerosene increased by Sh1.27 to retail at Sh83.07.
Whether you are among the 42 per cent who plan to reunite with loved ones in the rural areas, the 36 per cent who will relax at home or the millions who will flock to religious places, it’s Merry Christmas from Saturday Nation!
By CHARLES WOKABI
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