An Analysis of the Determinants of Household Income Expenditure: A Case Study of Lusaka Urban in 2025

Hollis Makungu and Kelvin Chibomba
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Hollis Makungu: Graduate School of Business, University of Zambia; Information and Communications University
Kelvin Chibomba: Information and Communications University

African Journal of Commercial Studies, 2026, vol. 7, issue 2

Abstract: This study examined the determinants of household income expenditure in Lusaka Urban, Zambia, using cross-sectional data collected from 60 households in 2025. Household consumption expenditure was treated as the dependent variable, while family size, disposable income, saving levels, and consumption patterns were considered independent variables. The study applied analysis of variance (ANOVA) to assess the relationship between household size and expenditure, and multiple regression analysis to evaluate the influence of the independent variables on consumption patterns. Findings revealed that non-poor households exhibited significantly higher expenditure levels compared to poor and extremely poor households. Regression results indicated that disposable income and family size were the only statistically significant determinants, both exhibiting a positive relationship with household consumption expenditure. Additional insights suggested that education levels exert a strong influence on consumption behaviour, while gender and location factors also contribute, though to a lesser extent. The study concludes that household consumption patterns in Lusaka are primarily driven by income levels and demographic characteristics. It recommends policies aimed at enhancing income generation, promoting savings culture, and investing in human capital development to support sustainable consumption patterns and economic well-being.

Keywords: Disposable Income; Family Size; Cross-sectional Data; Determinants; Household Income Expenditure (search for similar items in EconPapers)
JEL-codes: D12 D31 J22 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-71

DOI: 10.59413/ajocs/v7.i2.52

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