THE rising cost of living has emerged as the biggest concern for citizens worldwide, with millions of Kenyans facing the risk of falling into poverty as higher fuel prices, expensive food and mounting economic pressures squeeze household budgets.
A new survey by global, data-driven non-profit foundation–Future Investment Initiative (FII) Institute, in partnership with Ipsos, shows that 56 per cent of citizens across 32 countries, including Kenya, consider the cost of living their top priority.
This is six percentage points higher than last year.
Food and energy costs have become the biggest cost-of-living concern, cited by 34 per cent of respondents, reflecting the growing pressure on household spending and the cost of running businesses.
Kenyan households are already grappling with rising food and transport costs, with the Central Bank of Kenya (CBK) this month cautioning that prices of essential commodities could climb further in the coming weeks.
The CBK's September 2026 Agriculture Sector Survey identified milk, maize flour, wheat products, sugar and vegetables among commodities facing potential price increases due to high fuel prices, rising production costs and prolonged dry weather.
Annual inflation rose to 6.8 per cent in September, from 6.6 per cent in August and 6.5 per cent in July, driven largely by higher transport, food and non-food prices, with inflation expected to rise further this month on the back of escalating fuel prices.
World Bank has also warned that between one million and 2.4 million Kenyans could fall into poverty by the end of 2026, as inflationary pressures linked to conflict in the Middle East threaten to erode purchasing power.
In its latest Kenya Economic Update, the bank said the poverty rate could rise by between two and 4.5 percentage points this year, potentially pushing millions more people below the poverty line.
The combination of rising household expenses and limited employment opportunities threatens to deepen financial insecurity, particularly among low-income families that spend a large proportion of their earnings on food, transport and other basic necessities.
World Bank estimates that about 800,000 Kenyans enter the labour market annually, but only around 100,000 secure formal employment, leaving the majority to seek livelihoods in the informal sector.
Tom Bundervoet, the bank's lead economist, said the Middle East conflict could worsen poverty, although the eventual impact would depend on how economic conditions evolve.
"This conflict could push up the poverty rate in Kenya by a certain number of percentage points, which would translate to one million or even two million more Kenyans falling below the poverty line," Bundervoet said.
The bank has called for the creation of more formal jobs, stronger governance and an improved investment environment to help households withstand economic shocks.
The global survey reinforces these concerns, showing that financial security and access to healthcare remain central to people's well-being.
About 44 per cent of respondents identified staying physically healthy and accessing medical care when needed as a leading personal priority, while 43 per cent cited having a secure job or income.
Despite mounting economic anxieties, three-quarters of respondents in the survey, where Kenya was among the 19 global south countries surveyed, said they believed their personal lives were on track, even as confidence in the broader economic and political direction weakened.
Only 34 per cent believed the world was heading in the right direction, down three percentage points from 2025, while 46 per cent expressed similar confidence in their own countries.
The report, based on interviews with 61,200 people conducted between April 24 and June 5, 2026, also found that 69 per cent believed hard work could enable people to move up the social ladder, six percentage points higher than last year.
However, dissatisfaction with essential services remains widespread. Fewer than half of respondents said they were satisfied with the healthcare available to them, while 63 per cent said making healthcare affordable for everyone justified higher taxes.
The findings point to growing public expectations that governments should prioritise economic security, affordable essential services and opportunities for upward mobility.
For Kenya, the challenge is particularly acute as households contend with rising prices while job creation struggles to keep pace with the number of people entering the labour market.
The survey also highlighted concerns about the future of work, with 65 per cent of respondents saying university education was no longer worth its cost and 69 per cent calling on governments to prioritise vocational training in response to artificial intelligence.
While 57 per cent said they would pay for classes to improve their artificial intelligence skills, 80 per cent opposed allowing AI to make final decisions in areas such as hiring, healthcare and justice.
“citizens want their leaders to address cost-of-living pressures, invest in longevity, and ensure that AI serves humanity, not the other way around,” said Maha bint Mishari,executive officer, FFI Institute.
