CEOs Reveal Optimism as Kenya's Economy Poised for Growth

By John Pranay (Editor)

Kenya's economy is expected to expand in 2026, despite ongoing risks, as top CEOs plan to hire more staff due to improved business conditions. The optimism comes after a five-year high in private sector activity in November, with nearly 75% of banks and 42% of non-bank firms anticipating staff increases. This marks a significant turnaround from 2024 and early 2025 when hiring stalled, with the economy creating the fewest jobs since the Covid-19 pandemic.

The renewed optimism in Kenya's economy is driven by recovering private sector credit, lower lending rates, and sustained macroeconomic stability. A new Central Bank of Kenya (CBK) survey shows that 74% of banks and 42% of non-bank firms expect to increase staff in 2026. The hiring optimism is anchored on expectations that economic growth will strengthen in 2026, supported by planned business growth, diversification, and expansion in key sectors such as agriculture, manufacturing, trade, construction, and tourism. The Stanbic Bank Kenya Purchasing Managers' Index rose to 55.0 in November, the highest since October 2020, indicating growth in business activity.

• November 2020: Stanbic Bank Kenya Purchasing Managers' Index reaches a five-year high.

• 2024-2025: Hiring stalls, with the economy creating the fewest jobs since the Covid-19 pandemic.

• 2025: Private sector activity expands for the majority of the months, boosted by better performance across all sectors.

• 2026: Top CEOs plan to hire more staff, with 74% of banks and 42% of non-bank firms anticipating staff increases.

Kenya's economy has faced challenges in recent years, including a slowdown in 2024 and early 2025. However, the current optimism is reminiscent of the economic growth seen in the early 2010s, when the country experienced a period of rapid expansion. This growth was driven by investments in infrastructure, agriculture, and manufacturing, which created new job opportunities and stimulated economic activity.

The hiring optimism in Kenya's economy is expected to have a significant impact on the country's workforce, particularly in key sectors such as agriculture, manufacturing, trade, construction, and tourism. The renewed optimism is also expected to trigger international alliances, as Kenya's economic growth is likely to attract foreign investment and stimulate regional trade. However, the transport sector remains pessimistic about hiring prospects, citing high logistics costs, port congestion, and lengthy clearance processes.

The renewed optimism in Kenya's economy is part of a broader trend of economic growth in Africa. Despite ongoing risks, many African countries are expected to experience economic growth in 2026, driven by recovering private sector credit, lower lending rates, and sustained macroeconomic stability. This growth is expected to create new job opportunities and stimulate economic activity, making it a critical story to follow in the coming year.

This renewed optimism in Kenya's economy suggests that the country is poised for a period of rapid expansion, driven by planned business growth, diversification, and expansion in key sectors. However, this overlooks the ongoing risks facing the economy, including high logistics costs, port congestion, and lengthy clearance processes. Crucially, this also overlooks the need for the government to address these challenges and create a more favorable business environment. By doing so, Kenya can unlock its full economic potential and become a major player in the African economy.

Assessment: Bullish.

1. CEOs plan to hire more staff as business conditions improve — https://www.businessdailyafrica.com/bd/economy/ceos-plan-to-hire-more-staff-as-business-conditions-improve-5313324

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.