from MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) – MOST Kenyan businesses, mostly the hospitality and tourism sector, executives expect a stable economy after elections scheduled for August 9.
These are the findings of the Kenya Private Sector Alliance (KEPSA), which has launched the Chief Executives Officers (CEOs) Business Confidence Index Report 2022 in Nairobi.
With the current CEOs Business Confidence Index standing at 61 points overall, the business executives also expressed optimism to hire additional full-time employees in the next six months, which will translate to increased business operations.
“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,” KEPSA CEO, Carole Kariuki, said during the launch.
The Report developed in partnership with TIFA Research shows the hospitality and tourism sector as the most optimistic at 68 index points given that the sector was recovering from a worse situation occasioned by the COVID-19 pandemic compared to other sectors.
It is followed by the building and construction as well all as wholesale and retail sectors, both standing at 62 index points.
The CEOs 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 while 69 index points for the respective industries.
Finance and ICT are the least optimistic sectors perhaps since businesses in these sectors were already experiencing relative growth to other sectors at the height of the COVID.
“CEOs are considered to have a helicopter view of the economy,” said Maggie Ireri, CEO of TIFA Research.
“Their assessment of specific industries, and the overall economy provides investors and entrepreneurs with invaluable insight on the current and future economic conditions and performance in the country,” Ireri said.
Previous CEOs Business Confidence Index Surveys were conducted in 2017 and 2017, both elections years.
The index was at 53.8 and 44 points respectively.
– CAJ News