More Kenyans are turning to side jobs to supplement their income as household finances come under pressure, with a new report showing that income growth slowed in the second quarter of 2026 while digital fraud attempts continued to affect consumers across the country.
TransUnion’s Q2 2026 Consumer Pulse Study found that only 30 per cent of Kenyan consumers reported an increase in income over the preceding three months, down from 42 per cent in the same period last year.
The report identified reduced salaries, job losses and business closures or declining orders as the main factors behind the slowdown.
Salaries accounted for 27 per cent of responses, job losses 24 per cent, while business closures or declining orders accounted for 23 per cent.
With household budgets stretched, half of the consumers unable to pay at least one bill or loan in full said they planned to take up gig work to supplement their income.
Another 50 per cent intended to make partial payments, while 28 per cent expected to use savings or borrow from friends and family.
The pressure was particularly evident among younger consumers. More than half of Generation Z respondents, or 54 per cent, said they were unable to meet all their financial obligations, a seven-percentage-point increase from a year earlier.
Despite the challenges, 78 per cent of consumers expected their income to rise over the next 12 months. However, this was five percentage points lower than a year earlier, pointing to declining optimism about future earnings.
TransUnion Kenya Chief Executive Officer Morris Maina said consumers were adapting to slower income growth by diversifying their earnings and prioritising essential expenses.
“Kenyan consumers are demonstrating remarkable resilience in the face of slower income growth,” Maina said.
He added that households were making more deliberate decisions about credit and focusing on financial sustainability.
Consumers were also preparing to cut spending to cope with rising financial demands. More than half, or 53 per cent, planned to reduce discretionary expenses such as dining out, travel and entertainment. Another 48 per cent intended to cut spending on major purchases, including appliances and vehicles, while 40 per cent expected to reduce retail spending.
The survey found that 61 per cent of consumers could pay their bills and loans in full, unchanged from a year earlier. However, 41 per cent expected to increase spending on bills and loan repayments as they prioritised essential commitments.
Digital fraud targets 77% of consumers
Alongside financial pressures, digital fraud remained a major concern, with 77 per cent of consumers reporting that they had been targeted by fraud attempts through emails, online platforms, phone calls or text messages in the three months preceding the survey.
Of those targeted, 68 per cent avoided falling victim, while nine per cent said they had lost out to fraudsters. The share of consumers who fell victim declined from 10 per cent in the second quarter of 2025.
Generation Z respondents were the most vulnerable age group, with 12 per cent reporting that they had fallen victim to digital fraud.
Consumers who were notified that their identity details or online account information had been stolen took several steps to protect themselves. Some 57 per cent changed the password on the affected account, while 54 per cent updated passwords on other accounts. Another 46 per cent checked for unauthorised activity.
Maina said consumer education and fraud prevention would remain important as digital adoption expands.
“As digital adoption continues to grow, ongoing consumer education and fraud prevention solutions will remain critical to helping people participate in the economy with confidence,” he said.
Credit access improves, but borrowing plans decline
The report also found a gradual improvement in perceived access to credit, with 40 per cent of consumers saying they had sufficient access to credit and lending products, up from 36 per cent a year earlier.
However, the proportion planning to apply for new credit or refinance existing facilities over the next 12 months dropped to 57 per cent from 69 per cent.
Personal loans remained the most preferred option among prospective borrowers, cited by 53 per cent. Mobile loans attracted 45 per cent, up six percentage points from a year earlier, while 27 per cent planned to use buy now, pay later products.
The Consumer Pulse Study examined Kenyan consumers’ experiences and expectations around income, spending, credit and digital fraud.
The study was conducted by TransUnion in partnership with research provider Dynata between April 29 and May 19, 2026. It surveyed 462 Kenyan adults aged 18 and above through an online research panel.
The report said the findings had a 95 per cent confidence level and a calculated margin of error of plus or minus 4.6 percentage points.
