Kenyan CEOs Foresee an Economic Slowdown in the Next 12 Months

Nairobi — Kenyan Chief Executive Officers (CEOs) are cautiously optimistic about global economic growth, with only 56 percent stating it will either improve or stay the same in the next year.

The latest data from PwC Kenya’s 2024 CEO Survey, however, indicates that the local economy will decline in the next 12 months as many Kenyan CEOs remain uncertain of whether their companies will remain economically viable for 10 years or more if they continue on their current path.

“56 percent of Kenyan CEOs are cautiously optimistic about global economic growth in the next 12 months echoing the sentiments of 54 percent of their global counterparts however, 62 percent believe the local economy will decline in the next 12 months,” said Peter Ngahu, Country and Regional Senior Partner, Eastern Africa.

The report revealed that 48 percent of Kenyan CEOs are confident about their company’s prospects for revenue growth in the next 12 months, while only 56 percent expressed confidence about their revenue growth in the next three years.

“60 percent of Kenyan CEOs attribute 20 percent of their company’s sales in 2023 to new products and services they have introduced in the last three years and an additional 40 percent of CEOs attributing new products and services to a more than 20 percent contribution,” added Ngahu.

According to the survey, 86 percent of Kenyan CEOs also considered their neighboring countries in the East Africa region as important territories for revenue growth in the next 12 months.

The report notes that growth in intra-East African Community trade has fostered deeper regional integration between East African countries, including Uganda and Tanzania, standing at 34 percent, as well as Rwanda at 18 percent, boosting the common market among member states.

“At the time of the survey, Kenyan CEOs were optimistic about their company’s future growth prospects, based on previous performance,” stated Ngahu.

58 percent of those interviewed revealed that inflation continues to pose a great threat to Kenyan CEOs, which is relatively higher than 26 percent of their global counterparts, with 50 percent of CEOs also concerned about limited financial resources to run business operations.

“Kenyan CEOs are concerned about their exposure to territory threats. This directly speaks into their threat exposure to inflation and macroeconomic volatility,” the report concluded.

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