Kenyans to spend less this Christmas as inflation bites – report
A new report by WorldRemit on the Cost of Christmas predicts families in Kenya will spend 17 percent less on this year’s Christmas festivities compared to how much they did in 2021.
According to the report released on Wednesday, the average spending on Christmas is projected to be 1.65 times the nation’s average monthly income, underscoring the expense of the holiday.
The report says that across 23 countries observed, the average spending on food, gifts and decor will cost 156 percent of household incomes. Cameroon, Lebanon, and Rwanda will spend the highest percentages of their income on holiday celebrations this year.
The WorldRemit Cost of Christmas Study, now in its second year and encompassing 23 nations worldwide, tracks how the macroeconomic environment affects the price of traditional Christmas elements like the main holiday meal, typical gift spending, and decor.
The study compares the average cost of food, gifts, and decor to average household incomes to determine the season’s financial impact on families around the world.
Kenya’s inflation rate increased more rapidly than expected in October.
The Kenya National Bureau of Statistics (KNBS) reported that the annual inflation rate increased from 9.2% to 9.6% driven by the increase in food and non-alcoholic beverages prices.
For the eighth consecutive month, inflation increased and remained above the Central Bank of Kenya’s target range of 2.5% to 7.5%.