Things Kenyan CEOs are Most Worried About

Geopolitical tensions, cyber risks, energy prices and global recession are among issues that concern Kenyan firms the most, according to findings in the Central Bank of Kenya CEOs Survey for July 2025. This Survey was conducted between July 21 to August 1, 2025.

This monthly CBK Survey inquired from CEOs their levels of confidence/optimism in the growth prospects for their companies and sectors, as well as the growth prospects for the Kenyan and global economies over the next 12 months. In addition, the Survey interrogated CEOs on business activity in 2025 quarter two (Q2) compared to 2025 quarter one (Q1), and their expectations for economic activity in the third quarter of 2025 (Q3).

The Survey also sought to obtain the significant factors likely to affect business expansion/growth in the next one year (July 2025 – June, 2026), as well as the strategic directions and solutions to address their key constraining factors over the medium term (July 2025 – June, 2028).

CEOs identified elevated cost of doing business, reduced consumer demand, taxation and levies as some of the key factors that could constrain growth in the next 12 months.

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Many companies, especially those with global links are also worried about regional and geopolitical tensions and heightened global uncertainty on economic recovery following the new U.S. Administration policy changes, and global tariffs wars. Majority of firms’ CEOs interviewed by CBK say they expect to be impacted by the recent U.S trade tariffs and policy changes.

While the CBK has been aggressive in cutting the base lending rates, banks have been slow to respond with many firms insisting that decline in bank lending rates have been marginal. Reduced consumer demand is also a key concern, resulting in slow inventory movements. Most firms are also still reeling from the effects of political uncertainty owing to the impact of recent protests.

Majority of the CEOs (63%) covered by the CBK Survey were from privately-owned domestic firms, while the rest were from privately-owned foreign businesses (18%), government owned entities (4%), publicly listed foreign companies (2%), publicly listed domestic companies (2%) and other ownership structure (8%).

Among its key findings, the July CBK Survey shows that most firms expect improved growth prospects for the Kenyan economy for the next 12 months supported by continued macroeconomic stability, favourable weather conditions and expectations of improved liquidity owing to declining bank lending rates.

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