Over 1,000 chief executive officers (CEOs) of Kenyan private sector firms have outlined a series of recommendations to the government aimed at improving the business environment and stimulating economic growth.
The demands that were published in the Central Bank of Kenya’s January 2026 MPC CEOs Survey, which captures business leaders’ perceptions and expectations for the year ahead. The leaders called for key reforms which they said could stimulate the economic recovery.
The business leaders warned of several challenges that could hinder growth. These include high operating costs, reduced consumer demand, energy price volatility, geopolitical tensions, and uncertainties arising from U.S. trade policies and tariffs.
According to the survey, a recurring concern among CEOs was taxation and levies, especially on imported raw materials for their production needs.
They raised concerns that increased taxes and levies on imported raw materials were among the key factors driving up production costs, reducing competitiveness, and slowing business expansion.
The firms called on the government to review tax policies, reduce levies on raw materials, and streamline compliance requirements to make doing business in Kenya more viable.
In the survey, respondents highlighted that most firms were operating below or near full capacity, enabling them to respond to sudden spikes in demand.
Yet, constraints such as cash-flow issues, difficulty in accessing credit, stiff competition, and compliance requirements were identified as potential barriers to rapid expansion.
Technology adoption remains a central theme, with 86 per cent of firms reporting automation of key processes over the past 12 months to improve efficiency. Key areas include digital payments, cloud-based operations, e-procurement, operational monitoring systems, and enhanced customer communication platforms.
Despite progress, CEOs cited challenges in digital transformation, including high costs, expertise gaps, cyber risks, resistance to change among staff, and the rapid pace of technological evolution, urging the government to find a way to address them.
Even so, the company chiefs said that access to financing has improved for many firms, largely due to declining bank lending rates following monetary policy easing. Nevertheless, about 26 per cent of respondents still faced hurdles, citing high collateral requirements, bureaucratic delays, and cautious lending practices, especially for small and medium enterprises.
To support business expansion, CEOs called on the government to reduce taxes, streamline AfCFTA trade processes, improve infrastructure, ensure timely payments to suppliers, and promote policies that strengthen SMEs.
The survey, conducted between January 12 and 23, targeted CEOs from key sectors including tourism, ICT, financial services, manufacturing, agriculture, healthcare, wholesale and retail trade, transport, and real estate.
*Kenyans*
