Business leaders in Kenya are expressing optimism about the country’s economic outlook through 2025, buoyed by a stable macroeconomic environment both locally and internationally, according to a survey published by the Central Bank of Kenya on Saturday.
The survey suggests that domestic economic growth will be supported by decreasing inflation rates, steady Kenyan shilling, and favourable weather patterns that are expected to enhance agricultural productivity. On a global scale, optimism is driven by falling inflation, possible interest rate reductions in major economies, and the anticipated conclusion of elections in significant advanced nations.
Despite this positive outlook, the bank highlighted concerns regarding high production and operational costs, political instability, and liquidity challenges stemming from elevated credit costs and diminished consumer spending due to reduced disposable income.
The tourism sector in Kenya is projected to continue its recovery, with growth anticipated during the peak season from the festive period in 2024 through February 2025. The agriculture sector also shows promise, with expectations of increased exports to developed markets as global economic conditions improve. The Kenyan shilling has remained stable at 129 to the dollar, helping to lower import costs and reduce inflation to 3.6 per cent in September.
The World Bank forecasts an average economic growth rate of 5 per cent for Kenya in 2024, while the National Treasury expects growth of 5.2 per cent in 2024 and 5.4 per cent in 2025.
The survey involved chief executives from over 1,000 companies spanning various sectors, including tourism, manufacturing, agriculture, financial services, mining, energy, health, real estate, and transport, as well as some foreign-owned businesses.
