The Central Bank of Kenya (CBK) says business leaders in the country are optimistic about growth in 2026. According to its latest Chief Executive Officers Survey, private sector chiefs are encouraged by a stable macroeconomic environment, lower inflation, and a steady exchange rate.
The survey, conducted between January 12 and 23, 2026, targeted executives from private sector organizations, including members of the Kenya Association of Manufacturers (KAM), Kenya National Chamber of Commerce and Industry (KNCCI), and Kenya Private Sector Alliance (KEPSA). It shows that many CEOs see the conditions as favorable for expanding their businesses.
A key factor boosting confidence is the CBK’s recent decision to cut the base lending rate to 8.75 percent from 9 percent. The central bank said the move is aimed at supporting private sector credit growth amid improving economic stability. Inflation has also eased slightly, falling to 4.4 per cent in January from 4.5 per cent in December 2025.
CEOs cited several factors driving optimism, including expectations of favourable weather, increased government infrastructure spending, and opportunities in technology and digital marketing.
“Growth is expected to pick up, supported by stable inflation, a steady exchange rate and lower lending costs,” the survey notes.
The survey highlighted sectors likely to benefit from this positive environment. Professional services, financial services, hospitality, and ICT are expected to see increased demand, particularly as businesses expand into new markets using digital platforms.
Despite the optimism, executives flagged challenges such as rising operational costs, stiff competition, and muted consumer demand, which continue to affect wholesale and retail trade.
The health sector also faces hurdles, with pending bills and transitional issues linked to the new health insurance scheme slowing activity in the industry.
Overall, while there are challenges ahead, the CBK survey shows that Kenyan CEOs are confident that the country’s improving macroeconomic conditions will support broad-based business growth in 2026.
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