Kenya’s top business leaders are calling on President William Ruto to take urgent steps to stabilize the economy, warning that high taxation, excessive borrowing, and an unpredictable business environment are pushing companies to the brink of collapse.
A new Central Bank of Kenya (CBK) survey highlights growing concerns among CEOs across various industries. The report reveals that many businesses are struggling with rising operational costs, dwindling consumer demand, and limited access to credit. To reverse the economic downturn, CEOs are urging the government to implement policy shifts that promote investment, support businesses, and create a more stable economic environment.
The CEOs emphasize that the government must introduce predictable policies to encourage long-term investments. Sudden changes in tax and regulatory frameworks, they argue, have discouraged investors and increased business costs.
“We need stable policies and a predictable tax environment to build investor confidence and support economic growth,” a CEO quoted in the CBK survey stated.
Another industry leader highlighted the need to liberalize air transport to boost tourism and business travel.
Companies Shutting Down Amid Harsh Economic Conditions
The Business Registration Service (BRS) reports that over the past five years, 9,441 registered companies have closed due to economic hardships. In the 2022/2023 financial year alone, 2,030 firms were deregistered, with a similar number shutting down the previous year.
BRS Director General Kenneth Gathuma confirmed that most of these businesses voluntarily applied to be struck off after ceasing operations.