After weathering a challenging 2023 marked by a high cost of living, Kenya’s consumer spending is on an upward trajectory, buoyed by a series of positive economic indicators and strategic investments. According to the Stears Consumer Intelligence Report 2024, Kenya stands alongside select countries in Sub-Saharan Africa as an advanced consumer market, signaling significant potential for growth and development.
The classification places Kenya among countries with a large and diverse consumer class, boasting substantial purchasing power and consumption patterns akin to those of developed nations. This status is underpinned by advanced financial inclusion, a predominantly formal workforce, high income levels, and extensive access to electricity, reflecting the country’s evolving economic landscape.
With an average GDP growth rate of 5.6% in 2023 and a strengthening currency, Kenya has made substantial strides in enhancing its economic fundamentals. Notably, successful Eurobond issuance and a surge in external financing have contributed to the country’s recovery efforts. The Kenyan shilling appreciated by approximately 16% in 2024, signaling a significant rebound from the previous year’s decline.
Furthermore, Kenya’s inflation rate has been on a downward trajectory, decreasing to 6.3% in 2024 from 9.1% in 2022, supported by favorable agricultural outputs and currency stability. These positive macroeconomic trends have translated into tangible growth across key sectors such as tourism, manufacturing, and IT, as evidenced by the rising Purchasing Managers Index.
While Kenya leads the pack in East Africa’s advanced market category, other countries in Sub-Saharan Africa also display promising consumer market growth. Major economies like South Africa are expected to surpass Nigeria as the largest economy in the region.
