Kenya’s business community is maintaining a positive outlook on growth over the next 12 months, even as high operating costs, taxation and access to affordable credit remain key concerns.
The latest Central Bank of Kenya (CBK) CEOs Survey shows that firms recorded stronger demand, production and sales in the second quarter of 2026 compared with the first quarter, with businesses expecting activity to either improve or remain stable in the third quarter.
The survey points to improving business conditions, supported by better access to credit, technological adoption and relatively stable macroeconomic conditions.
CBK said chief executives remained optimistic about the economy despite heightened global risks, with innovation, customer focus and changing business models emerging as important drivers of expansion. High operating costs and geopolitical tensions, however, continued to weigh on business confidence.
Credit conditions improve
Access to finance also appears to be easing.
Nearly 58 per cent of CEOs surveyed described access to credit as moderate, while another 15.7 per cent said credit was easy to access.
The survey further found that 46 per cent of businesses had seen interest rates on their bank loans decline since August 2024, offering some relief to firms that have faced elevated borrowing costs.
The improvement comes against a backdrop of monetary policy easing by the CBK. The Central Bank Rate currently stands at 8.75 per cent, while the average commercial bank lending rate was 14.39 per cent in July 2026.
CBK has previously linked improved private-sector credit conditions to the more supportive economic environment. In its August monetary policy assessment, the bank said sustained optimism among businesses was supported by macroeconomic stability, increased digital innovation and improved private-sector credit growth.
The central bank retained the Central Bank Rate at 8.75 per cent at its August 11, 2026 meeting, signalling a continued focus on supporting economic activity while maintaining price stability.
Businesses accelerate digital transformation
Technology is also becoming increasingly central to corporate strategies.
About 71 per cent of firms reported integrating technology, automation or digitisation into their operations to improve efficiency, customer service and cost management.
The shift reflects a broader push by Kenyan businesses to reduce costs and improve productivity as they navigate a challenging operating environment.
CBK’s recent surveys have consistently identified technological innovation as one of the factors supporting business confidence. The January 2026 CEO survey, for instance, cited technological innovation alongside stable macroeconomic conditions and favourable weather expectations as factors supporting optimism about the economy.
High costs remain a drag
Despite the positive outlook, CEOs are calling for further measures to make it easier and cheaper to do business.
Among their priorities are lower operating costs, more affordable credit and predictable tax and regulatory policies.
Businesses are also seeking the timely settlement of pending government bills, which they say would help improve cash flows and ease liquidity pressures, particularly for firms that depend on government contracts.
High energy and operating costs remain a concern. CBK’s August assessment noted that businesses continued to flag high energy costs and heightened global uncertainties linked to geopolitical developments as risks to economic activity.
The July 2026 Market Perceptions Survey similarly found that businesses and investors remained optimistic about Kenya’s economic outlook, citing macroeconomic stability and improving private-sector credit as factors expected to sustain confidence. At the same time, respondents highlighted pressure from high fuel and energy prices.
Outlook remains positive
Overall, the latest CEO survey paints a picture of a private sector that is cautiously optimistic rather than fully out of the woods.
Stronger demand and sales, improved access to credit and rapid technology adoption are providing businesses with room to expand, while lower borrowing costs could further support investment and working capital.
However, CEOs are warning that sustained growth will depend on the government and policymakers addressing the cost of doing business, maintaining predictable regulations and taxation, improving access to affordable financing and clearing outstanding government obligations.
CBK said the latest survey showed that firms remained optimistic about Kenya’s growth prospects over the next year despite global risks, with stable business activity, improved credit access and broad technology adoption supporting the outlook.
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