Award Winning Fund Manager ICEA LION Asset Management releases the Second Quarter 2024 ILAM
Consumer Spending Index “Individual spending trends rise again while retail business sales trends flatline”
East Africa’s pioneering investment management firm, ICEA LION Asset Management, today released the 2Q24 ILAM
Consumer Spending Index, with the theme ‘Individual spending trends rise again but retail business sales trends flatline.
Speaking at the event, Richard Muriithi, Senior Portfolio Manager at ICEA LION Asset Management highlighted the
following key trends:
• Income trends worsen slightly
Half of respondents indicated static income levels over the last year, while 30% reported lower income and less
than 20% saw their incomes rise in the second quarter of 2024 compared to the same period in 2023.
This represented a deterioration from the first quarter of 2024 when 25% of respondents noted increases and decreases
in their income respectively.
Respondents working in the manufacturing and education sectors had the highest proportions of improved incomes
while those in the trade, transport and logistics sectors had the largest proportion of reduced incomes.
• ILAM Consumer Spending Index rises by 5.5% in 2Q24
The ILAM Consumer Spending Index rose by 5.5% in the second quarter of 2024 driven by a rise in individual
spending that offset static retail business sales trends.
• Individual spending trends improve
Individual spending trends improved by 11% in the second quarter of 2024 compared to first quarter.
The additional spending was mainly driven mainly by women and consumers aged between 26 and 35. The rise in
spending was largely attributed to higher cost of items purchased.
In terms of socio-economic categories, the lower middle-income segment recorded the strongest improvement in
spending trends in the second quarter, while the lower income segment had the biggest decline in spending trends.
87% of respondents made purchases using their own income, while 13% relied on credit.
• Retail business sales trends flatline
Retail business sales trends remained flat between the second quarter of 2024 and the first quarter.
An improvement in sales trends in large and medium sized businesses during the second quarter was offset by a
decline in sales trends in small and micro businesses.
In terms of business sectors, the clothing, retail shopping and food & beverage sectors saw an improvement in sales trends in the second quarter but this was offset by a plummeting of sales trends in the house fittings and accessories sectors.
In closing, ICEA LION Asset Management CEO – Einstein Kihanda, who is also the immediate former Chairman of
the Institute of Certified Investment and Financial Analysts (ICIFA) summarized thus: “Individual spending trends continued to remain resilient in a challenging economic environment while retail business sales trends remained
relatively muted”
ABOUT ICEA LION GROUP
ICEA LION Group is a financial services provider offering innovative products and services in Insurance, Pensions,
Investments, and Trusts. We deliver our services through four companies in Kenya, ICEA LION General Insurance,
ICEA LION Life Assurance, ICEA LION Asset Management, and ICEA LION Trust Company Limited. We also
have operations in Tanzania and Uganda.
ICEA LION Asset Management, a research-driven investment manager, consistently delivers superior returns to both
retail and institutional clients. With a 30-year track record in property development and investment in Kenya, ICEA.
LION Asset Management stands as the longest-serving investment manager in the industry. Offering investment
opportunities both in Kenya and offshore, the company actively seeks alternative investment avenues such as Private Equity for its clients. Currently, ICEA LION Asset Management manages assets totaling over KES 300 Billion. The
company is honored to have received the prestigious Fund Manager of the Year (Overall) award for three consecutive
years.
In June 2024, GCR Ratings affirmed ICEA LION Life Assurance Limited and ICEA General Insurance Company’s
national scale financial strength rating at AAA (KE) with a stable outlook. The rating affirms ICEA LION Insurance
Holdings’ solid financial profile, characterized by very strong capitalization and above average earnings.
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