NAIROBI, Kenya — More than 1,000 chief executive officers across Kenya have called on the government to implement urgent measures to lower the cost of doing business, improve access to affordable credit, and boost liquidity in the private sector as firms grapple with rising operational expenses and subdued demand.
The concerns emerged in the Central Bank of Kenya (CBK) CEOs Survey for May 2026, which found that business leaders remain cautiously optimistic about the economy despite mounting domestic and global challenges.
According to the survey, company executives want authorities to promote transparency and competition in credit pricing while expanding access to affordable financing options for businesses. They also called for increased investment in infrastructure and the streamlining of permits, licences, and regulatory fees that continue to raise operational costs.
The CEOs further urged the government to expedite the settlement of pending bills owed to suppliers, arguing that delayed payments have strained cash flows and weakened business confidence. They also advocated for stronger governance, accountability, and efficiency within public institutions to improve service delivery and attract investment.
The survey indicates that firms continue to face pressure from high operating costs, tight credit conditions, and weak consumer demand. Business leaders identified the cost of doing business, economic uncertainty, geopolitical tensions, macroeconomic volatility, and energy prices as the main factors likely to hinder growth in the coming months.
Many firms reported slower sales growth and weaker demand during the second quarter of 2026 compared to the first quarter. Executives attributed the slowdown to reduced consumer spending, delayed payments, and broader economic uncertainty.
Despite these challenges, respondents expressed confidence that business activity would remain stable during the third quarter, supported by seasonal demand, ongoing digital transformation, and relatively stable macroeconomic conditions.
The survey found that most firms are operating below or near full production capacity, suggesting that businesses have room to expand output but remain constrained by insufficient demand.
While access to credit improved moderately following recent monetary policy easing by the CBK, CEOs noted that high lending rates, stringent collateral requirements, and cumbersome documentation processes continue to limit borrowing, particularly for small and medium-sized enterprises.
On the international front, business leaders cited geopolitical tensions in the Middle East as a growing risk to economic stability. They warned that disruptions to global supply chains and higher fuel prices could increase production costs and place additional pressure on inflation.
The survey underscores the private sector’s expectation that policy interventions will focus on enhancing competitiveness, strengthening liquidity, and creating a more predictable business environment to sustain economic growth over the next 12 months.
