CEOs Sound Alarm as More Than 1,000 Firms Demand Urgent Government Action Over Rising Costs and Credit Crunch
More than 1,000 chief executives across Kenya have issued a stark warning over mounting economic pressures, calling on the government to take urgent action to lower business costs, improve access to affordable financing, and unlock liquidity in the private sector.
The concerns, captured in the Central Bank of Kenya (CBK) CEOs Survey for May 2026, paint a picture of a business community struggling to navigate rising operational expenses, persistent inflationary pressures, weak consumer demand, and restrictive lending conditions.
Business leaders are urging policymakers to implement reforms that would promote transparency and competition in credit pricing, expand access to affordable loans, and provide alternative financing options for firms facing cash flow constraints.
They have also called on the government to reduce the cost of doing business through strategic infrastructure investments and by streamlining licensing processes, permits, and regulatory fees that many firms say continue to weigh heavily on their operations.
A major concern highlighted by the CEOs is the delayed settlement of government payments to suppliers. The executives argue that clearing pending bills would inject much-needed liquidity into the economy and help businesses meet operational obligations, including salaries, taxes, and supplier payments.
In addition, respondents called for stronger governance, greater accountability, and improved efficiency within public institutions, saying such measures would enhance investor confidence and strengthen service delivery.
Despite the challenges, the survey found that many firms remain cautiously optimistic about Kenya’s economic outlook over the next year.
According to the report, businesses identified the cost of doing business, broader economic conditions, geopolitical tensions, macroeconomic volatility, and energy prices as the key factors likely to hinder growth.
“Business environment (cost of doing business), economic environment, geopolitical tensions, macroeconomic volatility, and energy prices are the key domestic and external factors that could hinder growth,” the report stated.
The findings suggest that elevated inflation, rising fuel and electricity costs, and uncertainty in the global economy continue to undermine profitability and discourage investment across several sectors.
Many firms reported mixed performance during the second quarter of 2026, with slower growth in sales and demand compared to the previous quarter. Respondents attributed the slowdown largely to reduced household spending power and delayed payments within the economy.
However, businesses expect activity to remain relatively stable in the third quarter, supported by seasonal demand patterns, continued digital transformation initiatives, and a generally stable macroeconomic environment.
“Most respondents expected the Kenyan economy to remain resilient in the next 12 months, despite the elevated global risks,” the survey noted.
Agriculture, expanding digital adoption, and stable financial sector conditions were identified as key factors supporting the country’s economic resilience.
The survey also revealed that many firms are operating below full capacity, indicating that businesses possess significant unused production potential but are being held back by weak demand and constrained market conditions.
While access to credit improved moderately following recent monetary policy easing, CEOs said high lending rates, strict collateral requirements, and extensive documentation requirements continue to limit borrowing, particularly for small and medium-sized enterprises.
Beyond domestic challenges, business leaders warned that ongoing geopolitical tensions, particularly in the Middle East, are driving up global fuel prices, disrupting supply chains, and increasing inflationary pressures that ultimately raise production costs for Kenyan firms.
The findings underscore growing concerns within Kenya’s corporate sector that unless urgent reforms are implemented, businesses may face increasing difficulties sustaining growth, creating jobs, and expanding investment amid an increasingly uncertain global economic environment.
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