The Central Bank of Kenya (CBK) Chief Executive Officers’ (CEOs) Survey for the third quarter of 2022 shows improved levels of confidence in the growth prospects for private sector as well as the growth prospects for the country’s economy over the next 12 months.
According to the Central Bank, the surveyed CEOs indicated that the impending elections remained a minor concern with most respondents expecting a return to normal operations soon after conclusion of the elections.
The Survey, which targets CEOs of over 900 key private sector organizations in Kenya, notes that the optimism was mainly attributed to continued post COVID-19 recovery; increased government expenditure on infrastructure (both domestically and in the EAC region); and sector specific growth opportunities especially in the services sector.
“However, respondents highlighted concerns over high inflation and the war in Ukraine which are likely to slow down Kenyan and global economic growth prospects, respectively.” The CBK said.
The surveyed CEOs were also concerned about the weakening Kenya shilling, high inflation, and declining consumer purchasing power. Some of the other challenges that they expect to persist include high energy and food prices even as the war in Ukraine lingers.
“With the upcoming elections, concerns over political uncertainty have declined. Nonetheless, respondents continued to highlight the economic environment (high inflation) and the business environment (cost of doing business) as factors that could constrain their growth in the near term.” The survey notes in part.