Compared to the last two quarters of 2024, the private sector stance in Kenya is less optimistic in 2025.
- Private sector in Kenya less optimistic in 2025 compared to last two quarters of 2024.
- Survey by KNCCI shows increasing pessimism over revenue, workforce size, and key input costs.
- 24% of businesses do not foresee revenue growth, expect stagnation and minor cuts.
A recent survey by the Kenya National Chambers of Commerce and Industry (KNCCI) revealed that with an increasing pessimism over revenue, workforce size, and key input costs, Kenyans seem less upbeat about it private sector.
This emphasizes how urgently revitalization initiatives are needed to improve Kenya’s business climate.
In the survey tagged ‘The 2025 Business Barometer Survey’ 24% of businesses do not foresee revenue growth.
They also expect stagnation and minor cuts due to high living costs and unfriendly regulations.
This finding is based on a survey that garnered 1981 responses from businesses across Kenya in all sectors.
“Looking ahead, high taxation, unfavorable government policies, and limited access to capital are identified as the biggest obstacles to the growth of Kenya’s private sector in 2025.
Businesses remain concerned about these factors and their potential to hinder economic progress and the overall competitiveness of the business environment,” Erick K. Rutto, KNCCI President said, as reported by Kenyan WallStreet.
The survey asked about organizations’ revenue, labor size, key input costs, climate change, and problems for 2025, which resulted in some very interesting findings.
What the Kenya private sector survey revealed
To begin with, compared to the last two quarters of 2024, the majority of firms surveyed (55%) are gloomy about a decrease in their core input costs in 2025.
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Additionally, companies in the East African nation are primarily expecting minor decreases in primary input costs, driven by seasonal considerations and better macroeconomic conditions, rather than a rise (37%) in these expenses.
Companies that anticipate a minor increase in primary input costs (55%) are mostly motivated by negative government policies, high taxes, and weak macroeconomic conditions.
Furthermore, all sectors, aside from energy and education, maintain a negative view of key input costs, with the manufacturing, retail & wholesale, ICT, and transportation sectors voicing the most worries.
