Fewer Kenyan households are seeing their earnings grow, pushing more people into side jobs and leaving younger consumers struggling to keep up with bills, according to credit bureau TransUnion’s latest Consumer Pulse Study.
Only 30 per cent of consumers reported an increase in income in the three months covered by the Q2 2026 survey, down from 42 per cent a year earlier. Reduced salaries (27 per cent), job losses (24 per cent) and business closures or declining orders (23 per cent) were the main drivers of the slowdown, TransUnion said.
The survey of 462 Kenyan adults was conducted between April 29 and May 19, 2026 with research firm Dynata.
Gen Z under the most strain
The share of consumers able to pay all their bills and loans was unchanged at 61 per cent. But 54 per cent of Gen Z respondents (aged 18–29) said they could not meet all their financial obligations, a seven-percentage-point rise year on year.
Among those unable to pay at least one bill or loan in full, half planned to make partial payments and another half intended to take up gig work to cover bills. That rose to 54 per cent among Gen Z and 62 per cent among Gen X. More than a quarter (28 per cent) expected to rely on savings or borrow from friends and family.
Optimism has cooled too. Some 78 per cent expect their income to rise over the next 12 months, five percentage points lower than a year ago, with the steepest drop among Gen Z.
“Many households are diversifying income streams, prioritising essential spending and making more deliberate decisions about credit,” said Morris Maina, chief executive of TransUnion Kenya.
Spending cuts and credit appetite
More than half (53 per cent) plan to cut discretionary spending on dining out, travel and entertainment, 48 per cent intend to delay big purchases such as appliances and vehicles, and 40 per cent expect to spend less at retail. Meanwhile, 41 per cent expect to spend more on bills and loan repayments.
Perceived access to credit improved, with 40 per cent saying they had sufficient access, up from 36 per cent. Yet the share planning to apply for new credit or refinance in the next year fell to 57 per cent from 69 per cent. Among Millennials, borrowing intentions dropped 15 points to 60 per cent.
Personal loans remain the most preferred product (53 per cent), while interest in mobile loans rose six points to 45 per cent. About 27 per cent plan to use buy now, pay later products.
The Star noted that CBK’s 2025 Bank Supervision Annual Report shows outstanding loans from digital credit providers nearly doubled to Sh110.1 billion in December 2025 from Sh55.2 billion a year earlier, as licensed providers rose from 85 to 195.
Fraud attempts remain widespread
Some 77 per cent of respondents said they had been targeted by fraud via email, online channels, phone calls or text messages in the previous three months. The share who fell victim eased to 9 per cent from 10 per cent, though 12 per cent of Gen Z reported being defrauded.
In response, 72 per cent changed passwords as a precaution in the previous 60 days, half enabled passwordless login or multi-factor authentication, and 36 per cent reviewed their credit reports.
For readers looking to add or switch income sources, full-time, part-time and remote openings are tracked daily on Job in Kenya.
