Kenya's apex bank says business activities returning to pre-COVID level

Chief executives of 230 private sector firms surveyed by the Central Bank of Kenya say they remain optimistic that the economic growth would be sustained in the subsequent quarters of the year due to the easing of the COVID-19 containment measures, continued government spending on infrastructure, anticipated favorable weather conditions and continued recovery from the effects of the pandemic.

NAIROBI, April 3 (Xinhua) -- Business activities across various sectors in Kenya are gradually returning to pre-COVID levels following the lifting of most restrictions, the Central Bank of Kenya said in a survey of chief executives released Saturday.

Most of the businesses experienced growth in the first quarter of 2022 as compared to the previous quarter as demand rises, said the apex bank.

"There has been increased demand due to seasonal factors, especially for professional services, and diaspora activities supporting the real estate sector," said the bank.

The chief executives remain optimistic that the growth would be sustained in the subsequent quarters due to the easing of the COVID-19 containment measures, continued government spending on infrastructure, anticipated favorable weather conditions and continued recovery from the effects of the pandemic, according to the regulator.

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Workers go about their business at a section of the Eastern bypass highway in Nairobi, capital of Kenya, March 7, 2022. (Photo by Chrispinus Omar/Xinhua)

Among the risks factors that worry the chief executives, however, are the rising geopolitical tensions, increased political activity ahead of Kenya's August polls and elevated purchase prices due to continued global supply chain disruptions.

"Higher input prices are expected to persist especially for imports where supply chain constraints continue to be experienced. These constraints are likely to be compounded by the Russia-Ukraine conflict," said the bank.

In the survey conducted in March, the Central Bank interviewed chief executives of 230 private sector firms in manufacturing, professional services, agriculture, financial services, information technology, media and telecommunications, wholesale and retail trade, real estate and tourism, hotel and restaurant sectors.

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Tourists go sightseeing at the Masai Mara National Reserve, Kenya, Aug. 30, 2021. (Xinhua/Long Lei) 

Each of the interviewed firms has a turnover of more than 1 billion shillings (about 8.68 million U.S. dollars) employing about 100 people.