By The Weekly Vision Reporter
A Central Bank of Kenya (CBK) survey targeting more than 1,000 private sector firms shows that most chief executives expect improved growth prospects for the Kenyan economy over the next 12 months. This optimism is supported by continued macroeconomic stability, favourable weather conditions, seasonal factors, and expectations of better access to credit owing to declining bank lending rates.
The Chief Executive Officers’ (CEOs) Survey for September revealed that a majority of respondents anticipate stronger performance at the company level over the next year.
“This optimism is supported by greater customer centricity, increased innovation and technology adoption, and automation of business processes to improve productivity and efficiency. Respondents also cited improved access to financing resulting from lower lending rates, ongoing restructuring and reassessment of business models to enhance resilience, and the strengthening of product portfolios to diversify revenue sources,” the CBK report noted.
However, the report also highlights challenges such as cash flow pressures from pending bills, limited access to credit despite falling interest rates, and subdued consumer demand—all of which could constrain growth at the firm level.
According to the survey, respondents reported improved sectoral growth prospects driven by sector-specific opportunities, though some industries continue to face operational difficulties.
A majority of CEOs also foresee higher growth prospects for the global economy over the next 12 months, buoyed by easing inflation and accommodative monetary policies in advanced economies.
Indicators of business activity showed mixed performance in the third quarter of 2025 compared to the second quarter. However, economic activity is expected to pick up in the fourth quarter, driven by seasonal factors.
The survey further found that most respondents expect to be affected by recent US trade tariffs and policy shifts. While a larger proportion reported a decline in bank lending rates in the September 2025 survey, the reduction was described as marginal.
Most firms indicated they are currently operating below full capacity. Nevertheless, the majority have adopted new technologies and automated key processes over the past year.
The key drivers of growth identified for the coming 12 months include customer centricity, enhanced operational efficiency, and continued innovation and automation.
However, respondents warned that the high cost of doing business, weak consumer demand, liquidity challenges, new US trade policies, and ongoing geopolitical tensions could constrain overall growth momentum.
