NAIROBI, Kenya, October 15 – The number of Kenyans reporting an increase in income fell to 30 percent in the second quarter of 2026 from 42 percent a year earlier, according to a TransUnion survey.
The study found that lower salaries, job losses and declining business orders were among the main reasons for the slowdown in income growth, cited by 27 percent, 24 percent and 23 percent of respondents, respectively.
Financial pressure was particularly high among young consumers, with 54 percent of Generation Z respondents saying they could not meet all their financial obligations, up seven percentage points from a year earlier.
Despite the pressure, 78 percent of consumers expected their incomes to increase over the next 12 months, although this was five percentage points lower than a year earlier.
TransUnion Kenya Chief Executive Officer Morris Maina said households were adjusting by prioritising essential spending, seeking additional sources of income and being more cautious about borrowing.
The survey found that 53 percent of consumers planned to cut spending on non-essential items such as entertainment, travel and dining out, while 48 percent intended to reduce spending on major purchases.
On borrowing, the proportion of consumers planning to apply for new credit or refinance existing loans fell to 57 percent from 69 percent a year earlier, even as more respondents said they had sufficient access to credit.
Personal loans remained the most preferred borrowing option at 53 percent, followed by mobile loans at 45 percent. Another 27 percent planned to use buy now, pay later services.
Digital fraud also remained a concern, with 77 percent of respondents saying they had been targeted through emails, phone calls, text messages or online platforms in the three months before the survey.
Of those targeted, nine percent said they had lost money or fallen victim to fraud, while 68 percent reported avoiding the schemes.
Maina said consumers were taking steps to protect their accounts, including changing passwords and monitoring their credit reports, but added that fraud prevention remained important as more Kenyans adopted digital financial services.
