Kenyan and Ethiopian consumers battle with rising prices and the high cost of living

East Africans are concerned with the high cost of living.

Among the 1,471 respondents in Kenya, Tanzania, and Ethiopia, the Kasi Cost of Living interviews conducted in June 2022 demonstrated that rising prices and high costs of living are two of the top three major concerns for consumers. Kenyan and Ethiopian consumers in particular are very concerned with rising prices and the high cost of living, while Tanzanian consumers are more concerned with the government corruption in their country. In fact, when respondents were asked what issues were constantly worrying them and their community, 77% of Kenyan respondents and 75% of Ethiopian respondents stated rising prices and the high cost of living as their most worrying issue, while only 45% of Tanzanian respondents stated this as an issue.

For Kenyans, the top three issues reported were rising prices and the high cost of living, upcoming elections, and finally the shortage of goods and supplies. Ethiopians demonstrated a different order of issues, with their top issue being rising prices and the high cost of living, then government corruption, and finally a shortage of goods and supplies. Rising prices and high costs of living were the third most pressing concern for 45% of Tanzanian respondents, while government corruption was a top issue for 52% of Tanzanians, followed by shortages of goods and supplies for 49% of respondents.

Rising prices and the high cost of living are impacting all income levels

Across the board, it is evident that the rising prices and high cost of living are affecting East African consumers of all income levels. This was not an issue isolated to lower-income respondents, especially in the cases of Kenya and Ethiopia. In fact, for 86% of high-income (>$4500 USD) earning Kenyan respondents and 89% of high-income Ethiopian respondents, rising prices and the high cost of living were their topmost issues worrying them and their community. For Tanzanians, however, only 8% of high-income respondents felt the same.

East Africans are responding to inflation by adjusting their consumption and shopping habits

To respond to the issue of rising prices and the high cost of living, East African consumers are changing their consumption habits. For Kenyan (61%) and Ethiopian (40%) consumers, this means purchasing cheaper alternatives, brands, or items, while for Tanzanian (58%) consumers, this means delaying non-essential purchases. 67% of high-income Kenyan respondents and 54% of high-income Ethiopian respondents have been purchasing cheaper alternatives, while more mid-high-income earners in Tanzania are delaying non-essential purchases.

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