Nairobi — Most Kenyan businesses expect their performances to be affected by limited financial resources, unfavorable regulations, and supply chain instability.
The Kenya National Chamber of Commerce and Industry (KNCCI) quarter-three (Q3) business barometer report replicates Q2 figures that were launched in April.
As per the data, high interest rates of 31 percent and limited access to credit (30 percent) topped the list of factors contributing to the challenge of limited financial resources, while unfavorable taxes and levies (44 percent) were the main causes of unfavorable regulations.
Increased transport costs (37 percent) were identified as the main cause of the supply chain instability challenge.
However, KNCCI president Erick Rutto revealed that most businesses are optimistic about a reduction in their primary input costs compared to Q2, with the education and agriculture sectors emerging as the most optimistic.
"The businesses are more confident in the reduction of their primary input cost compared to Q2 though manufacturing is coming out at the least optimistic sector on this metric. There is a need for increased efforts to support this struggling yet vital sector," said Rutto.
The Permanent Secretary (PS) of the of the State Department of Investment Promotion, Abubakar Hassan, said they are going to work with KNCCI and other stakeholders to ensure they address these issues and provide a conducive environment for businesses to thrive.
"As the State Department of Trade, we are committed to addressing these issues head-on. We will work closely with the KNCCI and other stakeholders to create a conducive environment for business growth," he said.
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"This includes streamlining regulatory processes, enhancing access to finance, and fostering Ban ecosystem that encourages innovation and competitiveness," he added.
The chairman Nairobi Security Exchange (NSE), Kiprono Kitonny urged the government to pay pending bills, terming that as the only way to ensure commercial vibrancy in Kenya.
"The best thing this government can do to the business community is to pay pending bills," Kiprono
In his remarks, Patrick Nyangweso, KNCCI CEO, recognized the significant benefits of this report to the business community.
"The report is an instrument that will be used to support and empower our members with information they need to decide on resource allocation to improve the business landscape in Kenya," he noted.
The report also indicated that majority of businesses (69 percent), apply climate mitigation and adaptation actions, with the mining and energy sector leading and retail and wholesale sector lagging behind.
KNCCI vowed to work with the government to bring in the 31 per cent of businesses that are yet to apply the climate mitigation and adaptation measures in their businesses.
By Hyrance Matinde
