Industry heads and manufacturers have urged the administration of President William Ruto to roll out various reforms aimed at bettering the economic situation of the country, among them ensuring political stability ahead of the next elections.
In a survey done by the Central Bank of Kenya targeting views and responses from 1,000 CEOs from the private and public sectors on their views on selected indicators, including business confidence and optimism, current business activity, and outlook for business activity in the near term, they raised key concerns that they expected the government to implement to stimulate the business situation.
The CEOs raised concerns about the recent tariff wars between the US and other countries in the world, where Kenya was among the countries that met with a 10 per cent baseline trade tariff.
Following CBK’s decision to reduce lending rates for six consecutive months—August last year through June this year—the executives noted that while the move was positive, the decline was too modest to create meaningful change. They urged the government to implement more business-friendly policies to support long-term private sector growth.
The CEOs further proposed several actionable reforms, including the settlement of pending bills to ease liquidity, reduced taxation and levies for individuals and corporates, and the establishment of a stable and predictable tax regime.
They also called for improved access to affordable credit, anti-corruption efforts, and efficiency within government institutions.
Manufacturers recommended the elimination of non-tariff barriers within the East African Community and broader African markets to boost regional trade. They also emphasised the need for policies that reduce the cost of doing business and enhance industrial productivity.
In tourism, stakeholders urged the government to ramp up international marketing efforts to revitalise the sector and attract more visitors.
To enhance collaboration, the CEOs proposed the creation of structured forums where government and industry leaders can co-develop economic strategies and share feedback regularly.
Meanwhile, Kenyan banks are expected to upscale their lending in the coming weeks, despite previous concerns about low consumer purchasing power and high government borrowing, according to the CBK's Market Perceptions Survey.
Despite commercial banks lowering their credit growth forecasts for 2025, these banks expect lending activity to increase shortly due to several factors.
According to the survey, the rebound is supported by a stable macroeconomic environment, improved liquidity conditions, and recovery in some key sectors, including agriculture, manufacturing, and construction.
Additionally, CBK, in its latest Monetary Policy Committee (MPC) report published on Tuesday, June 10, announced that it had reduced the base lending rate by 25 basis points to 9.75 per cent from 10.00 per cent.
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