Kenyan Chief Executive Officers (CEOs) have revealed that U.S. trade tariffs and policy shifts continue to affect most firms, with key sectors reporting significant operational strain.
According to the Central Bank of Kenya (CBK) Survey released on February 19, companies in professional services, information and communication technology (ICT), hospitality, financial services, and wholesale and retail trade are among the most impacted.
“Most respondents reported that they continue to be impacted by these developments. In particular, the professional services, ICT, hospitality, financial services and wholesale and retail trade sectors were reported to be the most affected,” read part of the survey.
C.E.O’s who responded cited ongoing uncertainty linked to U.S. trade measures, with many businesses reporting sustained pressure on operations and costs.
While some firms pointed to emerging opportunities following the extension of trade preferences under the African Growth and Opportunity Act (AGOA), others expressed concern over mounting challenges.
Businesses in the hospitality and health sectors, in particular, reported operational difficulties tied to reduced donor funding.
The Kenyan executives also flagged potential supply chain disruptions and rising import tariffs, warning that higher input costs could increase domestic production costs in the coming months.
CBK Reports 1,000 CEOs Warn of Supply Chain Risks Linked to U.S. Tariffs
At the same time, the survey indicates that global growth prospects are expected to improve over the next 12 months, supported by increased investment in artificial intelligence, accommodative monetary policies, and emerging trade opportunities.
However, the outlook may be constrained by trade restrictions and high tariffs, geopolitical tensions that could disrupt global supply chains and raise import costs, and potential financial pressures from elevated global debt levels.
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The Survey assessed the CEOs’ optimism regarding growth prospects for their companies, sector, the Kenyan and global economies over the next 12 months.
The CBK report revealed that Kenyan firms reported sustained optimism about the growth prospects of the Kenyan economy.
The improved outlook was because of a stable macroeconomic environment marked by steady inflation and exchange rates, and a continued decline in banks’ lending rates.
Moreover, favourable weather expectations, increased government infrastructure spending, and rising technology adoption driven by artificial intelligence, automation, and broader digital innovation
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Expectations for 2026
The survey shows that many businesses expect higher demand orders and sales growth during the quarter of 2026, while others expect production volumes to remain stable.
The anticipated increase in demand and growth in sales during the quarter will be supported by firms’ marketing strategies, including discounts, promotional offers, and intensive campaigns aimed at clearing carry-over stock from the festive season
Sales and purchase prices are generally expected to remain relatively stable during the quarter.
However, the report indicates a likelihood of higher sales prices due to upward price adjustments as firms seek to offset rising operating costs and protect profit margins.
Purchase prices are also likely to be affected by higher commodity prices, driven by both domestic and international market developments.
Meanwhile, the number of full-time employees is expected to remain largely unchanged.
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