Only three in ten Kenyan consumers reported an increase in income during the second quarter of 2026, as declining earnings, job losses and business challenges continued to put pressure on household finances.
According to TransUnion’s Q2 2026 Consumer Pulse Study, just 30 per cent of consumers reported an income increase over the preceding three months, compared to 42 per cent during the same period last year.
The decline was largely attributed to reduced salaries (27 per cent), job losses (24 per cent) and business closures or declining orders (23 per cent).
Despite the financial challenges, 78 per cent of consumers remained optimistic about their income prospects over the next 12 months, although this represented a five-percentage-point decline from a year earlier.
The study also found that 61 per cent of consumers could meet their bills and loan obligations, unchanged from last year. However, younger Kenyans were experiencing greater financial difficulties, with 54 per cent of Gen Z respondents reporting that they could not meet all their financial commitments.
To cope with the pressure, half of consumers struggling to meet their financial obligations planned to make partial payments, while another 50 per cent intended to take up gig work to supplement their income.
The trend was particularly pronounced among Gen X consumers (62 per cent) and Gen Z (54 per cent), highlighting the growing reliance on alternative income sources.
Consumers were also planning to tighten their spending, with 53 per cent expecting to reduce expenditure on dining out, travel and entertainment. Another 48 per cent planned to postpone major purchases such as appliances and vehicles, while 40 per cent intended to reduce retail spending.
At the same time, 41 per cent expected to increase spending on bills and loan repayments.
“Kenyan consumers are demonstrating remarkable resilience in the face of slower income growth,” said Morris Maina, Chief Executive Officer of TransUnion Kenya.
“Many households are diversifying income streams, prioritising essential spending and making more deliberate decisions about credit. These behaviours reflect a growing focus on financial sustainability and long-term financial stability.”
Kenyans Becoming More Cautious About Borrowing
The study revealed that while access to credit remains important to many Kenyans, consumers are increasingly cautious about taking on additional debt.
Nearly three-quarters (73 per cent) considered access to credit very or extremely important, while 40 per cent believed they had sufficient access to credit products, up from 36 per cent a year earlier.
However, the proportion of consumers planning to apply for new credit or refinance existing loans over the next 12 months declined from 69 per cent to 57 per cent.
Among Millennials, borrowing intentions dropped by 15 percentage points to 60 per cent.
Personal loans remained the most preferred borrowing option, cited by 53 per cent of prospective applicants, while interest in mobile loans rose to 45 per cent, up six percentage points year-on-year.
Another 27 per cent indicated plans to use buy now, pay later services, reflecting demand for flexible short-term financing options.
Digital Fraud Targets 77 Per Cent of Kenyan Consumers
Beyond financial pressures, the study highlighted growing exposure to digital fraud, with 77 per cent of Kenyan consumers reporting that they had been targeted by fraudulent emails, online messages, phone calls or text messages during the previous three months.
While 68 per cent said they had encountered fraud attempts without falling victim, nine per cent reported losing out to scams, compared to 10 per cent a year earlier.
Gen Z consumers recorded the highest reported victimisation rate among surveyed age groups, at 12 per cent.
The findings also pointed to increased efforts by consumers to protect their financial information.
During the preceding 60 days, 72 per cent had changed passwords as a precaution, while 50 per cent had enabled passwordless login or multi-factor authentication. Another 36 per cent had reviewed their credit reports for suspicious activity.
“It’s encouraging that consumers are proactive about protecting their financial information,” said Maina.
“From strengthening account security to monitoring credit reports, Kenyans are taking meaningful steps to safeguard themselves against fraud. As digital adoption continues to grow, ongoing consumer education and fraud prevention solutions will remain critical to helping people participate in the economy with confidence.”
The findings underscore the financial pressures facing Kenyan households as consumers balance slower income growth, essential spending, borrowing needs and the risks associated with an increasingly digital financial environment.
