NAIROBI, Kenya, Jun 22 – Oxford Business Group has noted confidence in the country’s economic prospects for the coming year in the inaugural Business Barometer Survey Report.
The survey was administered over 100 C-Suite executives from across Kenya’s industries.
From the 136 CEO’s interviewed, 95 percent felt either positive or very positive about local business conditions for the coming year as 75 percent of respondents say that it is likely or very likely that their company will make the significant investment within the next 12 months.
At the same time, 89 percent of respondents noted that the decision to cap commercial interest rates at four percentage points above the Central Bank of Kenya’s benchmark rate had improved the cost of borrowing but it made borrowing either more difficult or much more difficult.
The survey also noted the need to establish an enabling environment for Kenya’s private sector and SME’s to grow and carry out their investment and development plans in the years to come saying it will play a crucial role in the success of President Uhuru Kenyatta’s Big Four agenda.
Ann KirimaMuchoki, the chairperson of KenInvest, noted that while the factors such as credit capping, drought and protracted elections had combined to keep GDP growth in Kenya below 5 percent in 2017, the strong business sentiment evident in OBG’s survey reflected an improving outlook.
“Positive developments in key areas of the economy, including the tourism industry and significant rainfall in the latter part of 2017, are among the positives noted by both analysts and the business community.” She said.