Kenya: Private sector senior executives confident of economy

Kenya's private sector executives are expressing confidence in the country's economy despite the upcoming elections. The Kenya Private Sector Alliance (KEPSA) recently released a report, the Chief Executive Officer Business Confidence Index Survey Report, indicating that chief executives of private entities are optimistic about the economic outlook in Kenya. In an interview with CNBC Africa, KEPSA CEO Carol Kariuki discussed the factors contributing to this positive sentiment. Kariuki highlighted the resilience of the sector in the face of challenges such as the COVID-19 pandemic, indicating that even a modest recovery has generated optimism among industry leaders. The reopening of economies, both locally and internationally, has spurred business activity, particularly in the tourism sector, leading to increased confidence. Additionally, the relative calm surrounding the elections has facilitated ease of travel for tourists, further bolstering optimism. The CEO emphasized the importance of political stability and a favorable business environment in sustaining this positive outlook. Kariuki noted that the current confidence level surpasses that of the pre-election period in 2017, signaling a robust recovery post-COVID. She underscored the need for ongoing efforts to support economic rebound and urged for continuity in policies to avoid any setbacks. While sectors like finance and ICT have shown lower levels of optimism in the index, Kariuki attributed this to their resilience during the pandemic, as they did not experience significant losses like other sectors. Political uncertainties, global supply chain disruptions, inflation, and temporary slowdowns related to the elections were cited as factors contributing to a dip in private sector activities. Kariuki cautioned against viewing privatization as a one-size-fits-all solution, emphasizing the need to assess the merits and demerits based on sector-specific contexts. She advised a nuanced approach that considers commercial viability and regulatory requirements when exploring privatization of government entities. Looking ahead, the private sector's foremost expectation from the incoming government is a continued commitment to fostering a conducive business environment. Kariuki stressed the importance of collaboration between the government and private sector in driving economic prosperity for Kenyans, urging the next administration to build on existing momentum and address persistent challenges to propel the country towards becoming a middle-income nation. As Kenya navigates through the election period, private sector leaders remain cautiously optimistic about the future, contingent upon sustained political stability and policy support.