CBK Survey Shows Economy Is Improving

Kenya’s private sector is showing renewed confidence in the economy, according to the latest survey released by the Central Bank of Kenya (CBK). The findings paint a picture of cautious optimism, with business leaders expressing hope for stronger growth, expansion plans, and increased hiring in 2026.

The CEO survey, which gathers views from top executives across key sectors of the economy, indicates that many companies expect improved performance in the months ahead. The positive outlook is largely driven by easing inflation, a relatively stable exchange rate, and recent adjustments in the base lending rate that have made borrowing slightly more affordable for businesses.

For many firms, the reduction in financial pressure is opening doors for expansion. Companies in sectors such as manufacturing, financial services, hospitality, agriculture, and information and communication technology say they are preparing to grow operations, introduce new products, and reach new markets. Some have already started reviewing recruitment plans to bring in more workers as demand gradually improves.

Business leaders noted that lower inflation has helped restore consumer purchasing power. When households feel less strain from rising prices, they are more willing to spend. This, in turn, supports businesses, especially those in retail, transport, tourism, and services.

The survey also reflects improved stability in the macroeconomic environment. After a period of high interest rates and currency volatility, many executives believe conditions are now more predictable. Predictability is critical for planning investments, managing supply chains, and securing financing.

However, despite the optimism, CEOs remain cautious. Some pointed out ongoing risks, including global economic uncertainty, high public debt levels, and potential external shocks that could affect trade and investment. Others emphasized the need for continued policy consistency and reforms to strengthen the business climate.

As the year unfolds, all eyes will remain on inflation trends, interest rates, and government policy decisions that could either sustain or slow down this wave of business confidence.

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