A new survey by the Central Bank of Kenya (CBK) has revealed that top industry leaders are calling on the government to implement urgent reforms and ensure political stability to improve the country’s economic outlook.
The survey, which gathered views from 1,000 CEOs across public and private sectors, highlighted concerns over high taxes, limited access to credit, corruption, and inefficient government institutions.
The executives said that while CBK’s gradual reduction of lending rates since August 2023 was a welcome move, the cuts were too minimal to drive significant business growth.
Key proposals from the CEOs included the settlement of pending government bills to ease liquidity pressures, a more predictable tax regime, and policies that reduce the overall cost of doing business.
Manufacturers called for the removal of non-tariff barriers within the EAC and broader African markets, while tourism stakeholders pushed for aggressive international marketing.
The leaders also expressed concern about global tariff tensions, including a recent 10% trade tariff imposed on Kenyan exports in a broader U.S. trade move.
Meanwhile, CBK’s Market Perceptions Survey suggests banks are likely to increase lending in the coming weeks, buoyed by improved liquidity, macroeconomic stability, and a rebound in sectors like agriculture and construction.
This comes as the CBK lowered its base lending rate by 25 basis points to 9.75% in a bid to further stimulate growth.
