Kenyan CEOs bullish about economic growth in next 12 months

The chief executive officers (CEOs) of companies in the private sector in Kenya are still optimistic about the economy’s growth prospects over the next 12 months, the Central Bank of Kenya (CBK) said in its recent survey.

The optimism is primarily due to continued improvement in the business environment, as firms recovered from the impact of COVID-19 pandemic and higher government expenditures on infrastructure.

However, the top executives are concerned about the weakening of the Kenyan shilling, high inflation and declining consumer purchasing power.  

On the global economy, CEOs are worried about the expected slowdown due to negative spillovers from the Russia-Ukraine war and deteriorating global environment.

CEOs expect that inflation will begin to ease in the third quarter of 2022, positively impacting demand, production and sales volumes.

While the prices of goods and services sold are expected to remain elevated, global oil prices are likely to begin declining, easing the prices of goods and services sold, the survey said.

More than 900 key private sector CEOs participated in the survey, which was conducted between July 4 and July 15, 2022.

(Editing by Cleofe Maceda; cleofe.maceda@lseg.com)

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