With improving credit conditions and steady GDP growth, 2026 presents a critical window for businesses to fortify their foundations while actively positioning themselves for long-term expansion. Writes Dr. Isaac Nzyoka, Group Chief Operations Officer at Old Mutual East Africa.
Kenya enters 2026 with a cautiously optimistic economic outlook, yet the demand for resilience has never been sharper. The World Bank projects the economy to grow at an average of 4.9% through 2026–2027, buoyed by easing inflation and improved credit conditions.
However, businesses still face persistent challenges: macroeconomic uncertainty, climate volatility, and political transitions are already reshaping the operating environment. For modern leaders, resilience is no longer a defensive measure, it’s a strategic lever for growth. To remain “risk-proof,” Kenyan businesses must proactively strengthen their foundations across seven integrated pillars.
Despite the positive momentum, inflation remains sticky, hovering around 6.9% and external pressures such as geopolitical tensions and fluctuating commodity prices could tighten financial conditions. Businesses face an increased call to prioritize liquidity by strengthening balance sheets, building financial reserves, and diversifying credit sources.
The forecast recovery in credit growth for 2026 offers a prime opportunity for firms to renegotiate facilities, restructure debt, and secure financing aligned with long-term priorities. For MSMEs, disciplined cash-flow management and robust insurance coverage- protecting against property, operational, and political risks- will be critical as the country approaches the 2027 election cycle.
Digital transformation has moved from operational convenience to organizational survival. Research shows that digital adoption, particularly e-commerce, data analytics and FinTech integration, strengthens market agility, stabilizes revenues and enables businesses to scale beyond physical and geographic limitations.
In 2026, firms should prioritize systems that enhance business continuity: cloud migration, digital customer service platforms, automated operations, and data-driven decision-making. Digital capabilities are especially vital for small businesses, who remain highly vulnerable to disruptions caused by power outages, supply chain delays and inflationary shocks.
Reinforce Supply Chains and Operational Continuity
Kenyan businesses continue to face pressure from global supply chain instability, climate-related disruptions, and shifting trade links. In this environment, operational continuity must be reframed as a strategic function, not a reactive one.
Leaders should diversify supplier bases, shorten supply chains where possible, and invest in predictive analytics that flag vulnerabilities early. Business insurance remains a crucial tool for safeguarding assets during political or climate-driven disruptions. As we enter a politically active period ahead of 2027, formal risk transfer mechanisms will be especially important.
Integrate Climate Preparedness into Corporate Strategy
Climate events are a persistent top threat, affecting food systems, commodity prices, and household purchasing power. These factors can easily undo expected growth gains. Leaders must move decisively from simple “climate awareness” to comprehensive “climate readiness.”
This involves reinforcing physical infrastructure, improving energy resilience, adopting sustainable resource use, and building robust climate risk models to inform long-term planning. For core sectors like agriculture, logistics, and manufacturing, proactive climate adaptation will form both a resilience measure and a significant competitive advantage.
Cultivate Strong People, Culture, and Leadership Systems
An organization’s success is ultimately defined by its people. Kenya’s competitive edge lies in its young, innovative workforce, but leadership determines whether that potential is harnessed or squandered.
Organizations must foster adaptive cultures built on clear communication and employee wellbeing. Leaders must create environments where teams can innovate under pressure and respond quickly to market shifts without burning out. As growth picks up, firms that prioritize talent development will be best positioned to capture new opportunities.
Strengthen Enterprise Security and Governance
Businesses are responding to rising operational and political risks by expanding their security budgets. Reports indicate that 79% of Kenyan firms expect to increase their security budgets, focusing on modern technologies and regulatory compliance.
In 2026, the interplay between political realignment and evolving regulatory frameworks will demand more rigorous governance. Firms should invest in enterprise-wide risk assessments, scenario planning, and cybersecurity infrastructure that aligns with both local and international standards.
Elevate Customer Obsession
With competition rising across most sectors, businesses need to double their efforts in reaching and engaging customers. Meaningful engagements will triumph over transactional interactions in 2026. Companies that understand their customers’ evolving needs will be better positioned to anticipate challenges and adapt quickly to solve them. By personalizing touchpoints and services, businesses can deepen loyalty and build models that are inherently more adaptive to change.
Kenya’s private sector has a proven track record of resilience. With improving credit conditions and steady GDP growth, 2026 presents a critical window for businesses to fortify their foundations while actively positioning themselves for long-term expansion.
