Gen Z to spend Sh4.4tn in this year outpacing national budget

Despite a notion that Generation Z (Gen Z) don’t like tiring or stressful work, the contrary is true when it comes to spending, they are projected to spend a whooping Sh4.4 trillion this year.

The generation born between 1997-2012, have emerged as the biggest spenders in Kenya according to the latest World Data Lab (WDL) research.

Over 17 million Gen Z consumers in Kenya are projected spend $34 billion (Sh4.4 trillion) - more than the Kenyan budget, this year on goods and services, with the majority going towards food, housing and transport services.

It is projected that Nairobi, Mombasa and Kisumu will command the majority of consumer spend in 2025, with Meru, Mombasa and Thika emerging as the fastest-growing centres for spend by 2035.

WDL in its latest findings “Gen Z and the Future of the African Consumer”, traces spending throughout the world and Africa.

The insights present a snapshot of the shifting dynamics in African economies as Gen Z becomes the richest generation across the continent.

Africa is, and will remain, a Gen Z continent over the next ten years, unlike the rest of the world where the dominant generations are currently Millennials and Gen X, the two generations born between 1965 and 1996.

Across Africa, Gen Z will spend the most out of all generations in Africa with US$801 billion being consumed in 2025, which will expand to more than US$1 trillion after 2032.

According to the report,  In Kenya Gen Z will remain the wealthiest generation until 2040 despite the fact that Generation Alpha, the generation born between 2013-2025, have this year become more populous than them.

“As a group, Gen Z is currently the largest economic bloc who have access to more disposable cash than their parents but who also have higher aspirations for their spending,” said CEO of World Data Lab Wolfgang Fengler.

“Our insights reveal the immediate need for brands and companies to adapt their strategies to meet the needs of this younger consumer who now accounts for the majority of spending across Africa,” he said.

World Data Lab offers a data-driven view on how generations are shaping global spending patterns that leverage the World Data Pro platform, a powerful tool that can delve into spending at a neighbourhood level and provide projections up to 15 years into the future.

The survey further shows that Gen Z will drive Africa’s economic boom, outspending western peers by 2030.

“By 2030, Gen Z will become the largest, wealthiest, and most globally influential generation in history—with Africa emerging as a key driver of this shift,” the report reads in part.

It says that for the first time, consumer spending will no longer be dominated by the Global West, as Africa solidifies its position as a Gen Z powerhouse through 2035. 

Gen Z is already Africa’s top-spending generation, with expenditures reaching $801 billion in 2025. Kenya ranks among the top five contributors, with its Gen Z population spending $34 billion.

By 2035, this figure is projected to surge past $1 trillion, reshaping markets and economies across the continent. 

Major cities like Nairobi ($10.1 billion in 2025) are at the forefront of Gen Z spending, while coastal hubs like Mombasa (+8.2% growth) are driving expansion.

However, the fastest growth rates will come from emerging urban centres such as Meru, Thika, and Ruiru, signalling a shift in economic influence beyond traditional metropolitan areas.