More than half of Gen Z consumers surveyed in Kenya reported being unable to meet all their financial obligations, highlighting the financial pressures facing younger consumers.
According to TransUnion's Q2 2026 Consumer Pulse Study released on Wednesday, October 14, 54% of Gen Z respondents said they could not meet all their financial commitments.
The proportion represented a seven-percentage-point increase compared with the corresponding period in 2025, when 47% reported difficulties meeting their obligations.
The findings emerged against a backdrop of slowing reported income growth and changing spending priorities among Kenyan consumers.
The report found that only 30% of respondents reported an increase in income during the preceding three months, down from 42% a year earlier.
Reduced salaries, job losses and business closures or declining orders were cited as factors behind the decline in reported income growth.
The study, however, did not establish that these factors were directly responsible for the financial difficulties reported by Gen Z respondents.
Young Consumers Turn to Alternative Income Sources
The report showed that consumers struggling to meet their financial commitments were considering different ways to manage their expenses.
Among respondents who were unable to pay at least one bill or loan in full, 50% planned to supplement their income through gig work. The proportion was higher among Gen Z respondents, at 54%, while Gen X respondents recorded the highest share at 62%.
Another 50% of consumers who could not meet at least one financial obligation planned to make partial payments. Meanwhile, 28% of respondents expected to rely on their savings or borrow from friends and family to manage their financial commitments.
The findings highlight the range of measures consumers were considering to bridge gaps between their available income and financial obligations.
However, the report did not specify the types of gig work respondents intended to pursue or establish whether those who planned to seek additional income had already secured opportunities.
Kenyans Prepare to Cut Spending
The study also revealed that consumers were planning to adjust their spending as they prioritised essential expenses.
More than half of respondents, at 53%, planned to reduce discretionary spending, including expenditure on dining out, travel and entertainment. Another 48% intended to cut back on major purchases such as appliances and vehicles, while 40% anticipated reducing retail spending.
At the same time, 41% expected to increase spending on bills and loan repayments as they prioritised existing financial commitments.
The findings suggest that consumers were considering reductions in non-essential spending while allocating more money towards bills and debt obligations.
Despite the financial pressures, 78% of respondents expected their incomes to increase over the following 12 months, although this was five percentage points lower than a year earlier.
The study did not establish whether these expectations would translate into actual income growth.
Credit Remains Important to Consumers
The report also examined how consumers viewed access to credit amid financial pressures.
Nearly three-quarters of respondents, at 73%, considered access to credit very or extremely important. Meanwhile, 40% believed they had sufficient access to credit and lending products, up from 36% a year earlier.
However, the proportion intending to apply for new credit or refinance existing facilities over the next 12 months fell to 57%, compared with 69% in the previous year's survey.
Among prospective credit applicants, personal loans remained the preferred option at 53%, while interest in mobile loans stood at 45%, up six percentage points year-on-year.
The report further found that 27% of respondents planned to use Buy Now, Pay Later (BNPL) products.
These figures reflect consumers' reported preferences and intentions rather than completed borrowing transactions.
