Consumer Intelligence
Kenya’ s Food And Beverage Market Is Under Pressure And Consumers Are Redefining Value
By Yannick Lefang
As Kenya moves through the second half of 2025, the food and beverage sector is undergoing a deep and far-reaching transformation. The market is being reshaped by persistent financial strain, rising living costs, and a noticeable shift in how households define and seek value in everyday essentials. Food remains a fundamental category, but it is no longer insulated from budget cuts, consumption limits, or lifestyle trade-offs. For more than two years, household sentiment and spending behavior have stayed negative, reflecting a deeper behavioral reset rather than a passing phase.
In May 2025, Kenya’ s Consumer Sentiment Index stood at-6 while the Household Spending Index declined further to-13. These metrics point to long-term economic pressure, forcing consumers to take control of their own financial outcomes. Instead of waiting for recovery, people are adopting new habits, simplifying consumption patterns, and making more deliberate, thoughtful food-related decisions that reflect their constrained priorities. Data from Kasi Insight’ s Consumer Sentiment Index, Share of Wallet Tracker, and Cost of Living Tracker reveal three core behavioral shifts that are now defining the food and beverage landscape in Kenya.
Food remains a major expense, but decisions are now more calculated
Despite tightening household budgets, food still commands a large portion of monthly income. In the first quarter
Shoppers are focusing not just on what they spend, but on how far their money can go. Households are adjusting portion sizes, buying in smaller quantities, skipping repeat purchases, and making every item in the shopping basket justify its presence. Food is no longer seen as a fixed cost but as a negotiable expense that must fit within evolving financial boundaries. of 2025, 35 % of consumers reported spending between 11 % and 20 % of their income on food and beverages. Another 18 % said their food spending ranges between 21 % and 30 %. The trend is even more pronounced among Millennials, where 13 % spend more than 30 % of their income on food, compared to just 4 % among Generation X.
Although food remains a top priority, spending is now being watched more closely than ever. In both the fourth quarter of 2024 and the first quarter of 2025, 80 % of consumers said food prices had increased. Only 3 % observed any decline. This steady cost pressure has shifted food decisions from routine behavior to highly intentional choices.
Shoppers are focusing not just on what they spend, but on how far their money can go. Households are adjusting portion sizes, buying in smaller quantities, skipping repeat purchases, and making every item in the shopping basket justify its presence. Food is no longer seen as a fixed cost but as a negotiable expense that must fit within evolving financial boundaries.
Consumers are not just switching brands they are changing routines
Brand substitution is one response, but it is only the surface of a much deeper change. In the first quarter of 2025, 60 % of consumers said they were purchasing cheaper brands or product alternatives. However, this shift extends beyond
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