A Central Bank of Kenya (CBK) survey has revealed that over 1,000 Chief Executive Officers (CEOs) are calling for urgent government action to improve the business environment and strengthen private-sector growth.
The 2026 CEOs survey respondents identified several key measures they say could make doing business easier and more competitive in the country.
One of the leading recommendations is the need to promote transparency and competition in credit pricing.
CBK Survey Shows CEOs Push for Cheaper Credit, Lower Business Costs
The CEOs also called for expanded access to affordable credit and the development of alternative financing options to support businesses that struggle to secure traditional bank loans.
They further urged the government to continue reducing the cost of doing business by investing in infrastructure that improves competitiveness and lowers transaction costs.
This includes reducing the number of permits and associated fees businesses are required to obtain.
In addition, the respondents highlighted the importance of ensuring the prompt settlement of pending payments and other obligations to suppliers, saying this would help improve liquidity in the private sector and ease cash-flow pressures on businesses.
The survey also emphasized the need to strengthen governance, accountability, and efficiency within public institutions.
According to the respondents, improved public service delivery would boost investor confidence and encourage greater private-sector participation in the economy.
At the same time, the CEOs called for stronger support for innovation, digitization, and the adoption of emerging technologies.
They have recommended targeted incentives, capacity building, and increased investment in digital infrastructure to help businesses modernize and remain competitive in a rapidly changing global economy.
Also Read: CBK Explains Why It Has Paused Interest Rate Changes
Growth Outlook Remains Cautiously Optimistic
Beyond policy reforms, the survey showed a cautiously optimistic outlook among the majority of firms.
The majority of respondents remain positive about Kenya’s economic growth prospects over the next 12 months, despite heightened global uncertainties.
Companies have reported mixed business performance in the second quarter of 2026 compared to the first quarter, reflecting varying sectoral conditions and demand patterns.
However, respondents expect resilient business activity in the third quarter of 2026, supported by favorable weather conditions, relatively stable macroeconomic conditions, technological innovation, and expected growth in seasonal demand.
A larger share of firms reported the ability to meet unexpected increases in demand, supported by available unutilized capacity and ongoing efficiency improvements.
On financing, access to bank credit was reported to have eased moderately.
However, lending rates, collateral requirements, and documentation demands remain key constraints for many businesses.
Technology adoption and automation were also highlighted as key drivers of efficiency gains and business growth.
Also Read: CBK Reveals Number of Kenyan Banks Yet to Meet Ksh3 Billion Capital Requirement
Long-Term Outlook Shaped by Cost Pressures, Innovation Push and Efficiency Drive
Looking ahead, firms identified several risks to growth over the next 12 months, including elevated business costs, weak consumer demand, high energy prices, geopolitical tensions, and ongoing global economic uncertainty.
Despite these challenges, firms said their medium-term strategic priorities remain focused on cost optimization, diversification, innovation, and operational efficiency.
The survey findings indicate that firms’ strategic priorities over the next three years remain centered on improving efficiency, diversifying operations, and optimizing costs.
Sustainable business growth, digital transformation, and investment in talent and skills development continue to feature prominently in firms’ medium-term plans as organizations seek to enhance productivity, competitiveness, and resilience.
