Retail Demand in Kenya drops slightly by 1 Point as Voice and Data Demand Surges by 7 Points in H1 2024

The Kasi Retail Demand Index provides valuable insights into consumer demand for various retail categories in Kenya. Ranging from +100 to -100, the index measures how consumer habits influence demand across different categories. A higher index value indicates strong consumer interest and purchasing intent, while a lower value suggests decreased demand. Comparing H2 2023 to H1 2024, the data reveals a slight overall decline in demand, dropping by just 1 point, from 34.4 to 33.0. However, while some categories saw reductions in demand, others experienced noticeable growth.

In H1 2024, the top three demands in Kenya were fresh groceries (69), personal hygiene products (69), and voice and data (62). Across categories, voice and data showed the most significant increase, climbing by 7 points to reach 62 in H1 2024. This suggests that staying connected digitally is a growing priority for Kenyans. Other categories such as skin care products (+5), personal hygiene products (+4), laundry products (+3), and vitamins/supplements (+2) also saw growth, highlighting the ongoing consumer focus on health and wellness.

Gen Zers are driving the Telecom Boom

Leading this surge in voice and data demand is Gen Z, whose demand index skyrocketed by 21 points, rising from 39 in H2 2023 to 59 in H1 2024. This generation, fully immersed in the digital world, relies heavily on mobile data for activities such as social media, streaming, online learning, and entrepreneurship. Their rapid adoption of mobile services positions them as the primary drivers behind the increased demand for voice and data.

Female consumers also demonstrated strong growth, with their demand increasing by 12 points from 48 in H2 2023 to 60 in H1 2024. This surge highlights women’s growing dependence on mobile connectivity for a wide range of activities, from staying connected socially to engaging in e-commerce and managing daily communications. Meanwhile, Millennials and Gen X contributed more moderately to the overall increase in demand. Millennials saw a 5-point increase from 60 to 65, while Gen X demand grew by 3 points, rising from 61 to 64. Although both groups remain essential to the market, their growth appears more stable in contrast to the Gen Z.

Brands must evolve and diversify their offerings, or risk losing to more agile competitors

With voice and data showing the highest demand growth, telecom brands are positioned to capitalize on this momentum by understanding and catering to the shifting consumer landscape. Brands should focus on Gen Z, whose demand has grown exponentially, and female consumers, who are also showing significant demand increases. Tailored offerings such as competitive data bundles, enhanced digital services, and personalized marketing strategies are key to engaging these fast-growing segments.

However, simply meeting demand is not enough—diversification will be crucial for long-term success. Companies should look to diversify their service portfolios and focus on bundling options that cater to the specific needs of each consumer segment.

The Kasi Retail Demand Index is valuable for tracking retail demand across multiple categories, not just telecom. It reveals consumer preferences in airtime, data bundles, personal hygiene, household goods, and health supplements, offering a comprehensive view. The dataset helps pinpoint which consumer segments are driving the surge in demand for specific services or products thereby enabling businesses to tailor offerings, align strategies, and target consumers more effectively across diverse sectors, staying ahead of market shifts.

Contact our team today to explore how our consumer intelligence can empower your decision-making process. Win with confidence with Kasi insight. https://www.kasiinsight.com

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