Kenya's business leaders are optimistic about the country's economic prospects through 2025, driven by a stable macroeconomic environment both locally and globally, according to a recent survey by the Central Bank of Kenya.
NAIROBI, Oct. 13 (Xinhua) -- Kenya's business leaders are optimistic about the country's economic prospects through 2025, driven by a stable macroeconomic environment both locally and globally, according to a survey released by the Central Bank of Kenya Saturday.
The survey indicates that domestic economic growth is expected to be fueled by lower inflation, a stable shilling, and favorable weather conditions that are set to boost agricultural output. Globally, optimism stems from declining inflation rates, potential interest rate cuts in major economies, and the anticipated conclusion of elections in key advanced nations.
"However, high production and operational costs locally, political disturbances, and liquidity constraints arising from the high cost of credit and subdued consumer demand resulting from lower disposable income continue to pose a threat to the prospects," the bank said in the survey released in Nairobi, Kenya's capital.
Kenya's tourism sector is expected to continue its recovery, with growth driven by increased activity during the peak season extending from the 2024 festive period to February 2025. The agriculture sector also holds promise, with expectations of increased exports to developed markets as the global economic environment stabilizes. The Kenyan shilling has maintained stability at 129 to the dollar, reducing import costs and helping bring inflation down to 3.6 percent in September.
The World Bank has forecasted an average economic growth of 5 percent for Kenya in 2024, while the National Treasury projects growth of 5.2 percent in 2024 and 5.4 percent in 2025.
The survey targeted chief executives from more than 1,000 firms across sectors such as tourism, manufacturing, agriculture, financial services, mining, energy, health, real estate, and transport, including some foreign-owned businesses. ■