The Kenyan economy will remain stable in the current financial year despite the 2022 general elections, a report said on Thursday.
In its Kenyan CEO Business Confidence Survey 2022 report, the Kenya Private Sector Alliance (KEPSA) revealed a 37 per cent increase in optimism in the 2022 elections compared to 2017.
The third CEO’s Business Confidence Index stands at 61 points. Business executives also expressed optimism about hiring additional full-time employees in the next six months.
“This sentiment is reported against the backdrop of the ongoing war in Ukraine that has disrupted global value chains, resulting in price increases in fuel, wheat, and fertilizer, which are critical inputs for Kenya’s manufacturing and agriculture sector, coupled with the rise in inflation globally,” said KEPSA CEO Carole Kariuki during the launch.
“Looking into the future, the least optimistic sectors are finance and ICT, perhaps since businesses in these sectors were already experiencing growth relative to other sectors at the height of the Covid-19 pandemic and do not expect much change for them in the coming six months,” said the survey released by the Kenya Private Sector Alliance (Kepsa).
The report, developed in partnership with TIFA Research, indicated that the tourism and hospitality sectors are the most optimistic, at an average confidence index of 68 points. Building, construction, wholesale, and retail sectors followed at 62 index points.
Business executives expect the economic conditions to improve across all industries compared to six months ago, rising from an average of 47 index points to 66 points for the economy and 69 index points for the respective sectors.
The Report is similar to the Central Bank of Kenya (CBK) Chief Executive Officers’ Survey for the third quarter of 2022.
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