NAIROBI, Kenya, Feb 23 – Kenyan chief executive officers are optimistic about business growth in 2026, buoyed by a stable macroeconomic environment, easing inflation and a steady exchange rate.
According to the latest CEOs Survey by the Central Bank of Kenya (CBK), the positive outlook is also supported by declining bank lending rates, expectations of favourable weather conditions and increased government infrastructure spending.
The optimism follows the CBK’s decision to cut its base lending rate to 8.75 percent this month from 9 percent, in a move aimed at boosting private sector credit growth amid improving economic stability and exchange rate performance.
The rate cut came after the country’s inflation eased slightly to 4.4 percent last month from 4.5 percent in December 2025.
“This optimism is driven by rising demand in select service sectors including professional services, financial services, hospitality and ICT, driven by increased access to new market segments, particularly through digital marketing,” the CBK CEOs Survey shows.
The survey, conducted between January 12 and 23, 2026, targeted chief executives of private sector organisations, including members of the Kenya Association of Manufacturers (KAM), the Kenya National Chamber of Commerce and Industry (KNCCI) and the Kenya Private Sector Alliance (KEPSA).
However, CEOs flagged elevated operating costs and stiff competition as key challenges.
The survey noted that wholesale and retail trade activity continues to be weighed down by muted consumer demand, while growth prospects in the health sector are constrained by rising pending bills and transitional challenges linked to the new health insurance scheme, which have slowed activity in the sector.
