The Kenya National Chamber of Commerce and Industry (KNCCI) Quarterly Business Barometer report released on Tuesday, April 2, has indicated a mixed outlook across sectors for the second quarter of the year.
While the majority of businesses maintain a positive stance, disparities emerge, with some sectors exhibiting extreme confidence while others express reservations.
According to the report, the hospitality and tourism sectors stand out with a remarkable level of confidence in revenue growth, at a staggering 41 per cent.
Conversely, the mining, financial services, ICT, and education sectors show zero per cent confidence in revenue growth, indicating challenges in these areas.
The survey, conducted over 12 days via Google Forms with 214 responses nationwide, delved into various aspects, including revenue projections, workforce expectations, expansion plans, and challenges anticipated for Q2.
Among the sectors, hospitality and tourism, energy, education, manufacturing, and processing sectors are most optimistic about registering revenue growth, with figures ranging from 21 per cent to 41 per cent.
While 75 per cent of respondents express moderate optimism for revenue growth in financial services, the health sector falls slightly behind with 69 per cent showing moderate confidence.
Real estate and construction, however, present a less optimistic outlook compared to other sectors.
A significant finding of the report is the divergence in workforce confidence across sectors. The energy sector emerges as the most confident in workforce size growth, while professional services exhibit less optimism in this regard.
Regarding the cost of primary inputs, the survey reveals a split opinion among respondents. While 39 per cent anticipate a decrease in input costs, an equivalent proportion foresees an increase.
Notably, the energy sector appears most optimistic about input cost reduction, while the ICT and professional services sectors brace for potential fluctuations.
Despite overall optimism for expansion in Q2, challenges such as financial constraints, regulatory issues, and supply chain instability remain prominent concerns for businesses.
Transport and energy sectors, in particular, highlight supply chain instability and climate change as potential obstacles to their performance.
