Is Kenya ready to bounce back?
Nairobi, Kenya - The official swearing in of President Uhuru Kenyatta marks the end of the electoral process in Kenya and hopefully the return of some normalcy in the East Africa powerhouse. For business leaders and workers in Kenya, the last few months have been challenging to say the least. In fact, the political uncertainty resulted in a slow-down economical activity, reduction in investments and layoffs.
A metric that clearly shows the impact of political instability on Kenyans, especially the urban dwellers, is the KIC Score. The KIC Score is Africa's first monthly consumer confidence index that tracks seven metrics.
The KIC Score explained.
Since its launch in June 2016, the Kenya KIC Score went as high as +10 in July 2016 and as low as -8 ahead of the second election in October 2017. For comparison sake, the Ghana KIC Score went as low as -14 back in July 2016 in the midst of the power crisis and before the elections in that country. It took several months for consumer confidence in Ghana to bounce back and reached all time high at +44 in May 2017.
Our expectations is that Kenya will bounce back as political uncertainty fades away and economic activity picks up. Consumers are the main drivers of economic activity so it is critical for business leaders to get the pulse on the consumer going forward. The slowdown provides an opportunity for businesses to take a head start, beat the competition and ride the recovery.
If you need to know more about the KIC Score and how it can help your business at this critical time, please contact us.
About KASI KIC Score
The KASI Insight Consumer Confidence Score (KIC SCORE) is a composite index compiled from a seven-questions survey that runs monthly via our consumer polls in the countries covered. The data output is based on fresh, randomly selected representative sample of city dwellers aged 18-64.
Released the first week of every month, the KASI Insight Consumer Confidence Index (KIC Score) provides a focused view on consumer perceptions in seven African urban centers (Ghana, Nigeria, Kenya, South Africa, Cameroon, Ivory Coast, Tanzania) where most spending in the continent is concentrated. The survey provides a simple measure of consumers’ optimism about their economic prospects in the near term and attitude towards making major purchasing decisions.