Top 10 commodities and services that Kenyans are overspending on in 2020
Airtime, matatu fares, and rent top as the list as of the list as Beef with bones, decoder charges, and university hostel fees sneak their way into Kenya’s cost of living basket in 2020
Are you a shopaholic? Or do you spend more than a quarter of your income on buying airtime?
If you fall into the category of Kenyans who are well-versed about the latest and trending Safaricom offers ranging from Bonga points to doubling your airtime, then you may need to stop and check your priorities when it comes to expenditure.
In this article, the Newspro.co.ke media team will take you through the list of top 10 commodities that have sneaked their way into Kenya’s cost of living basket in 2020 and now Kenyans are overspending on them.
This list is based on the report filed by the Kenya National Bureau of Statistics, 2020 capturing Kenyans’ expenditure, tastes and preferences since 2019.
Top 10 commodities that Kenyans are overspending on in 2020
According to the Kenya National Bureau of statistics, Airtime has become popular in Kenya catapulting Safaricom to the greatest heights in East and Central Africa.
This new entrant has found its way into the cost of living basket dubbed CPI, a thing which policymakers are not taking kindly given the economic implications this serious expenditure may have. Dr. Bitange Ndemo, the former Permanent Secretary in the Ministry of ICT and a senior lecturer at the UON said that airtime is no longer a luxury for most Kenyan households.
- Matatu fares
Matatu fares come second in the list of Top 10 commodities that Kenyans are overspending on.
According to KNBS, the Kenyan transport sector is flourishing courtesy of many Kenyans especially in major towns and cities such as Nakuru, Mombasa, Kisumu, and Mombasa where matatu fares are a necessary evil.
- Rent on single rooms
According to the KNBS report, most Kenyans reside in rented single rooms given their low levels of income.
Since many Kenyans have been obliged to migrate to urban areas in search of informal employment, rent on single rooms is likely to thrive.
- Decoder charges
Entertainment is a key component in most Kenyan households. Therefore, most Kenyans incur expenses trying to catch with the latest forms of entertainment.
DSTV tops the list of decoder TV subscription fees.
- Mobile money transfers
How many times do you transfer money via Mpesa or other channels such as airtel money?
I am cocksure that you cannot count the number of times you conduct Mpesa transactions.
This explains why mobile money transfers have found their way to your pocket.
- University boarding fees
Are you surprised that many smart investors in Kenya are pumping their money into University hostels?
Let me break it down for you. This is simply because they are guaranteed returns.
There are no single day university hostels that can be left empty, except during the era of coronavirus pandemic, since students must find a place to stay while taking their studies.
- Courier services
Being one of the most reliable and efficient ways of sending your goods or documents, courier services such as G4S and TNT have sneaked their way into Kenya’s cost of living basket.
According to KNBS, Kenyans are spending a considerable amount of their income to send documents and parcels across the country.
- Garbage and refuse collection
Given that most Kenyans live in urban areas, garbage and refuse collection fees is a necessary expenditure for most Kenyans.
In Nairobi for instance, Kenyans spend up to Kshs 100 in a month to have their garbage and refuse collected by the county council.
- White bread and milk
Since breakfast is essential in the proper functioning of the human body, the KNBS report has also revealed that most Kenyans are spending a huge fraction of their income to purchase white bread and milk for breakfast.
- Beef with bones
Last but not least, is beef with bones. This is a highly sought after commodity in Kenya’s cost of living basket. This could be explained by the fact that most areas are battling insecurity forcing many Kenyan families to keep dogs to tighten security in their homes.
This explains why beef with bones has made it to the list of top 10 commodities that Kenyans are overspending on.
Following lifestyle, consumer behavior and taste changes, several items such as kerosene stove, radio cassette, CD player and cassette hire have been shelved.