President William Ruto has been handed a policy roadmap by Kenyan top business leaders, as a new survey highlights the urgent need to cut costs and improve Kenya’s investment climate.
The findings, drawn from a survey of 1,000 Chief Executive Officers (CEO) across key sectors, point to persistent challenges in the country’s business environment, even as firms eye growth opportunities in 2026.
According to the March 2026 CEOs Survey by the Central Bank of Kenya, respondents from industries including finance, agriculture, tourism and manufacturing outlined measures that could unlock economic activity and boost enterprise growth.
Elevated cost of doing business, subdued consumer demand, higher energy prices, heightened geopolitical tensions, and global macroeconomic volatility were identified as key factors that could hinder growth.
Nevertheless, firms intend to mitigate these constraints through improved cost and risk management, diversification of operations (including expansion into new markets and development of new products) and enhanced use of technology.
CEOs Advise Ruto to Cut Costs, Streamline Policies to Boost Business
Top among the recommendations is the need to promote transparency in credit pricing, a move CEOs say would enhance fair competition among commercial banks and improve access to affordable financing.
Business leaders have also called for broader reforms to strengthen the overall economic environment, including policy stability and predictability, particularly around taxes and levies. Frequent regulatory changes, they warned, continue to weigh on investor confidence.
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The survey further flagged the rising cost of doing business in Kenya. The CEOs attributed the problem to inflationary pressure, high energy prices, and persistent tax burdens.
According to them, this continues to erode profits and reduce consumer purchasing power, explaining that many firms expressed alarm over the anticipated impact of U.S. trade policy changes.
At the same time, they urged the government to reduce the number of operating licenses and associated fees.
CEOs noted that streamlining these requirements would ease the burden on enterprises and encourage expansion.
Delayed payments to suppliers also emerged as a key concern, with respondents calling for prompt settlement of government and private sector obligations to improve liquidity within the economy.
At the institutional level, the CEOs emphasised the need to strengthen governance across the public sector to enhance efficiency and service delivery, which they said remains critical for private sector growth.
To support investment, the survey recommended measures to expand access to financing for businesses, alongside continued improvements in infrastructure.
Respondents further emphasised the need for continued investment in infrastructure to support productivity and attract investment.
On energy costs, the CEOs proposed measures to reduce electricity prices, including the consideration of targeted subsidies to ease pressure on businesses and improve competitiveness.
Private Firms Remain Optimistic on Economy Despite Geopolitical Tensions
Meanwhile, majority of firms in Kenya remain optimistic about the country’s economic growth over the next 12 months, even amid rising geopolitical tensions.
The outlook is supported by expectations of improved agricultural output due to favourable weather conditions, a relatively stable macroeconomic environment, ongoing technological innovation, and seasonal demand patterns.
Business activity remained broadly stable in the first quarter of 2026 compared to the fourth quarter of 2025, mainly driven by seasonal factors. However, firms reported mixed performance expectations for the second quarter of 2026.
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The survey also found that most businesses are currently operating below or near full capacity, giving them room to handle unexpected increases in demand or sales.
On financing, respondents noted a slight easing in access to bank credit. However, some firms pointed out that commercial bank lending rates remain relatively high despite recent policy rate cuts, limiting easier access to credit.
