A Central Bank of Kenya(CBK) Survey undertaken in March 2021 showed higher growth prospects for local companies and sectors over the next 12 months.
It is still unclear if this optimism still stands following new lockdown measures, now in place since the month of April, 2021.
According to CEOs interviewed in a March 2021 Survey by the CBK, the COVID-19 vaccine rollout and continued reopening of the economy led CEOs to paint a rosy picture.
The CEOs Survey aimed at capturing information on top firms’ perceptions, expectations and decisions and support critical policy decisions, including monetary policy.
According to this Survey, most CEOs expected an increase in business activity in 2021 Q2, particularly about demand/orders, production volumes and growth in sales of goods and services.
There was marked business recovery in Q1 as seen by more demand/orders and higher volumes of production. This was especially evident in the agriculture and service sector firms, the latter having experienced the most significant contraction in output in 2020 Q2 and Q3.
CEOs highlighted the economic environment, COVID-19 pandemic and the business environment as significant factors that could constrain growth in 2021.
This CBK Survey interviewed CEOs on their business confidence and or optimism levels as well as outlook.
It also sought to establish the critical internal and external factors that could influence the business outlook and strategic priorities over the medium term.
CEOs’ expressed concerns over a challenging environment triggered by the pandemic. Still, many said they would leverage such attributes as brand strength, skilled workforce and effective supply chains while managing costs.
Others planned to lobby with the government and digitize/innovate to address their most urgent concerns.
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