86% Of Kenyan CEOs Would Consider Investing In Other East African Countries This Year

CEOs in Kenya are cautiously optimistic about the global economy, with 56% saying it will either improve or stay the same in the next 12 months.

This echoes the sentiment of global CEOs, where 54% said the global economy will either improve or stay the same within the same period.

60% of Kenyan CEOs attribute 20% of their company’s sales in 2023 to new products and services they have introduced in the last three years.

58% of Kenyan CEOs view that inflation continues to be a significant threat, however, 56% are confident about their revenue growth in the next three years.

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Commenting on this year’s survey, Peter Ngahu, Country and Regional Senior Partner, PwC Kenya and Eastern Africa says, “There is a great deal of uncertainty in the world right now. The long-term effects of COVID-19, geopolitical tensions and conflicts, climate change, and a slowdown in the global economy have somehow made CEOs in Africa accustomed to uncertainty”.

In dealing with current threats, 58% of Kenyan CEOs believe they are highly exposed to threats of inflation while 50% indicate that limited financial resources inhibit how they create, deliver, and capture value.

Muniu Thoithi, Advisory Leader for PwC East Africa points out that, “In an era of continuous reinvention, CEOs must spearhead the transformation journey to reshape both their organizations and themselves to flourish amid disruption. CEOs must lead the quest for strategic discovery and evolve sustainable approaches to value creation. CEOs committed to reinvention must foster 2 environments that embrace and acknowledge innovation, prioritize curiosity and a willingness to learn, and empower managers to assist individuals in adapting to change”.

“CEOs and their leadership teams ultimately need to have a clear sense of how deals, projects or other investments create, maintain and grow value, and should be willing to make tough calls, which may include the reallocation of resources from legacy businesses or redefining a company’s industry boundaries and ecosystem partners. There is significant merit in looking beyond the confines of a company and embracing broader business ecosystems. Collaborating across industry boundaries through joint ventures or alliances enables companies to create greater value than they could achieve alone. PwC’s analysis suggests that, in the automotive industry alone, as the industry electrifies and encompasses more technology and data, its ecosystem revenues could more than double by 2030” says Isaac Otolo Deals Partner PwC Kenya.

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60% of the Kenyan CEOs are in progress with some of the climate actions such as improving energy efficiency, improving climate-friendly products, services, and technology (50%), and upskilling or re[1]skilling their workforce to prepare them for climate-drive changes in their business model (42%). Moreso, 14% of CEOs indicated that they are currently selling products, services, or technologies that support their customers’ climate-resilience efforts.

“Climate-friendly investments often require significant upfront expenditure for renewable energy infrastructure, energy-efficient technologies, or sustainable practices. In addition, the transition to a low-carbon economy will involve regulatory changes and shifting consumer preferences. This uncertainty can create volatility in the market for climate-friendly investments and a higher perceived risk for investors. Despite these challenges, there is growing recognition of the long-term value of climate-friendly investments. As technology improves, costs decline, and market preferences shift, the financial performance of climate-friendly investments is likely to improve over time”. These were the sentiments shared by Edward Kerich, Partner and Environmental Social & Governance Lead