Festive season coming at worst possible time for many Kenyans

You are broke, yet the sound of jingle bells is drawing closer. Every time you see those Christmas lights and decorations that have started showing up in shopping complexes, you clutch your wallet or purse in fear. You may not be alone.

As you read this, it is 28 days to Christmas but the holiday pressure has started piling. Retailers have already begun holiday marketing, wooing  shoppers with huge discounts.

On Friday, Kenyans, for the second time, were treated to “Black Friday,” an annual American jamboree that comes after the Thanksgiving holiday that is marked as the first day of traditional Christmas shopping. 

Last year, Price Water House Coopers (PWC) placed the total global economic activity generated by the month-long Christmas festivities at $475 billion, up from $435 billion the previous year.

In Kenya, however, 46 per cent of the people spent less in 2015 than in 2014, according to a survey done by Consumer Insight.

“Sixty per cent said they don’t have money to enjoy themselves while 46 per cent said they spent less than they did in 2014 and only 28 per cent spent more than the previous year,” said the study.

Sadly, indicators show that Kenyans are headed to yet another bleak festive season. Prices for goods and services are rising amidst a weakening shilling, rebounding fuel prices, a challenging business environment and a change in the school calendar.

By Friday, the local currency had weakened to Sh102 against the dollar, an erosion which has been ongoing for the last three months, while inflation currently stands at 6.5 per cent,  the highest in eight months. Fuel, too, has hit Sh94 per litre and the last time it was this high was in August last year.

With Kenya being a net importer of commodities, the price of fuel and the exchange rate of the Kenya shilling have a direct impact on the cost of commodities and services.

STRETCHED BUDGET

A 2-kg packet of maize flour is going for Sh110 while a kilo of sugar costs Sh130. These two are some of the most consumed household commodities in the country. Last December, the same quantities of the two were retailing at Sh95 and Sh115 respectively.

On the corporate scene, several companies will not be holding the traditional end-year parties while many more have been forced to lay off staff in order to survive.

On Thursday, NIC Bank announced it is sending home 32 senior managers, joining other banks such as Family Bank, Sidian and First Community Bank which have sacked employees.

Given the above factors, most Kenyans are on a tight financial spot as the holiday season sets in.

“In fact if you talk of being on a shoe string budget, it is like everyone is in this situation,” says Kevin Odongo, an economist.

“Traditionally, this is the one time where there is an overall increase in spending and businesses go all out to attract shoppers but it might not be as huge as expected because we are approaching an election year and investors are keeping their money,” he says.

The situation is even worse for parents whose children sat the Kenya Certificate of Primary Education (KCPE). According to the new rules set by the Ministry of Education, the results will be announced in about two weeks from now and students will join Form One at the beginning of January instead of February, as has been the tradition.

This means that as parents shop for the festive season, they will also budget to accommodate this change of dates and the expenses therein.

Ms Waceke Nduati, the Managing Director of Centonomy, a company that advises people on financial management, says it will even be tougher as school going children will have already stayed home for two months by the time Christmas arrives.

“The surprise cost of having children home for the extended holiday can stretch any budget. It will take creativity to live up to the expectations of our children who may not understand the effect of the changes,” she tells Lifestyle.

“Often it’s a certain toy, game or trip. If it is as clear-cut as that then make “it” the focus and cut back on all the other plans which they don’t care much for. If it is more general, then maintaining a positive enthusiastic attitude can go a long way in keeping the children happy.”

So can Kenyans still manage to enjoy the festive season?

MANAGEABLE CHUNKS

Reverend John Godia of the Anglican Church, Siaya Diocese, says Kenyans can still share in the magic and joys of Christmas if they plan right.

“If you go to the supermarket also carry with you a list of needs for back-to-school. Just think what would be your priority? Celebration or back to school?” he asks.

“Just take care not to overspend. Yes, you will celebrate Christmas, you will celebrate New Year and even before you clear what is left, the next day they are going to school,” he says.

Ms Nduati says it is neither too late nor too early to start planning for this Christmas but the time to start planning for next year’s festivities is now.

“Zig Ziglar says, If you aim for nothing you’ll hit it every time”. Decide what kind of holiday you want, find out how much it will cost and then divide it into manageable chunks. Think about it this way, Sh50 per day for a month is Sh1,500, for a year it’s Sh18,250”.

“We always advise our clients at Centonomy to pay themselves first, that is, save and invest. Then we advise that they pay their bills second, that is, debt repayments, rent, school fees etc.  As the December income arrives make as many of the payments as possible before the holiday spending,” she adds.

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Henry Ohanga (Octopizzo)

Hip-hop artiste, Nairobi

It has been a good year and he will be rewarding himself and his family during the festive season.

“Everything has been fine. My projects have gone well and it has been one of my favourite years: I’ve grown, I’ve moved from the place I was, then moved to an even better place,” he says.

This festive season, he plans to fly out of Kenya, to a place he would not disclose, to have fun with his children and partner.

Nevertheless, the rapper, who makes his money from music and a family business, says he has attended barely five corporate events the whole year, which is a huge shortfall from 2015.

“In the music business, there haven’t been as many shows,” he says.

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Kinyilai ole Maiyan

Shopkeeper, Buruburu, Nairobi

For the festive season, Mr Maiyan plans to take a two-month break to visit his rural home in Isinya, Kajiado County, and he has saved some money to indulge with his wife and child.

“People don’t have money. The economy is bad,” says the 22-year-old, noting that November has been particularly challenging for his customers.

Mr Maiyan says the sums he has had to write down as “loan” for items sold with his customers promising to pay at the end of the month have risen this year.

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Gabriel Mwangi

Farmer, Kirinyaga County

Determined to make an extra penny, Now that the rains are here, Mr Mwangi plans to spend most of the holiday season farming.

“Tomatoes, capsicum and cucumber are always in demand in the month of December,” he says.

“We transplanted three months ago to make sure we start harvesting when they are needed in the market. From next week, when we start harvesting, there will be low supply but high demand, hence we can sell at a better price,” he notes.

However,  the farmer, who uses greenhouse technology, says the cost of production has gone up.

“The cost of constructing materials for greenhouses has gone high compared to last year. This includes agronomical support and farm management,” he says.

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Esther Nyambere

Trader, Nairobi

She will be spending the holidays with her family.

“Christmas is a time to meet my many cousins, uncles, aunts, nephews and nieces that I do not get to see often due to the nature of my work. I want us to laugh together,” she said.

“Christmas should be about spending time with close people — friends and family. I have not been home enough this year. I want to go home and spend time with my family,” she said.

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James Mwangi

Boutique owner, Nairobi

As other people complain, Mwangi, who sells clothes and shoes at Mbogo House on Moi Avenue, has had an impressive year and is not thinking of taking a break this festive season.

“We are waiting for December,” he says, optimistic that he will surpass the Sh133,000 mark that he hit in sales in December last year.

Like most retail traders who depend on December in order to make booming sales, he has no plans to close his shop yet.

“I don’t have any plans until December 24,” he says. “Maybe if something happens mid-December and things look up, then I can plan.”

He adds, “But if it goes on like this, it is after 24th that I will decide where to go.

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Ruth Mwangi

Trader, Nairobi

After spending the better part of the year at her stall on Kimathi Street, she wants to take her time off and dedicate it to her church, Apostolic Faith Church in Bahati.

“As a church we have always assisted widows and the poor so that they can have a good Christmas too,” she said.

“We should take this as a time to reflect on how far the Lord has brought us this year,” she said.

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Faith Murugu

Teacher, Moi Forces Academy, Nakuru

She will be visiting the places they used to go to with her friends while growing up in Mboroga village in Meru.

“I haven’t seen my parents in a long time, so am planning to make a point of visiting them this month. At the same time am going with my husband to visit his parents just before Christmas.” she says.

“The only problem is that it is difficult to decide what I will take to them because prices are just so high,” she adds.

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Nelson Marita

Procurement Officer, Kenya Airports Authority in Wajir.

Due to work commitments, Mr Marita has never been home during the festive season. This year will not be different but he has no qualms about it.

“The festive season will come and go, nothing changes,” he says.

“As an employee of the airport, when you realise how many people are required to make it operate, you don’t necessarily think of how you miss enjoying food or drinks like everyone else,” he says.

His only regret is missing spending time with his family during the holiday season.