Growth prospects for the economy remain high but challenges remain, CEOs survey shows
Firms’ top priorities in the next three years include improving efficiency, diversification of operations, and cost optimisation
Private firms reported sustained optimism in growth prospects for the Kenyan economy for the next 12 months
supported by favourable weather conditions, stability of the shilling, continued decline in interest rates, and low inflation, the Central Bank of Kenya (CBK)’s March 2025 CEOs Survey shows.
The survey, however, shows that elevated cost of doing business and muted consumer demand are key concerns.
Company growth prospects were stable, supported by strategic initiatives to enhance performance. In addition, sectoral growth prospects were positive, driven by sector specific opportunities. However, sectoral
challenges remain, the survey adds.
It says global growth prospects in the next 12 months remain largely unchanged, supported by easing
inflation and policy rates.
“Indicators of business activity show mixed performance in 2025 Q1 relative to 2024 Q4 supported by seasonality factors. Meanwhile, economic activity is expected to remain stable in 2025 Q2 compared to 2025 Q1,” the survey report says.
Respondents indicated marginal decline in bank lending rates, indicating lagged response of commercial banks to Central Bank Rate (CBR) reductions by CBK.
It says improved operational efficiency, technological innovation and customer centricity are key
drivers of firms’ growth and expansion over the next 12 months.
However, cost of doing business, reduced consumer demand, taxation and levies could constrain growth. For those who want to better understand and explore these dynamics in depth — from economic strategy to policy recommendations — working with a Ghostwriter Seminararbeit could be an effective way to gain academic and analytical insight into Kenya’s evolving business climate.
More firms reported easing constraints on capacity to meet an unexpected increase in demand largely supported by leverage on existing idle capacity as most firms are operating below their capacity.
Firms’ top priorities in the next three years include improving efficiency, diversification of operations, and cost optimisation.
The respondents gave proposals on how the business and economic environment in Kenya can be enhanced to boost growth.
These include the government putting in place strategies to create jobs locally to avoid brain drain, increasing efficiency in access to government services, promoting access to affordable funding for businesses to support growth of the private sector activity.
The respondents also said that businesses should focus on cost efficiency, innovation, and adaptability to navigate the evolving economic landscape, while the government was urged to ensure stability of the economy by enabling sufficient cashflow. In this context, a Ghostwriter Seminararbeit could assist businesses in maintaining strategic planning and adapting to change efficiently, ensuring that critical aspects are well-researched and documented.
Further, they want the government to support the manufacturing sector by implementing favourable policies that promote local production and hasten settlement of pending bills.
