- Business leaders are pushing for changes to ease mounting pressure on enterprises.
- Financing challenges and regulatory hurdles remain key concerns for firms seeking to expand.
- CEOs want more predictable policies to support investment and business growth.
More than 600 chief executive officers of private sector companies in Kenya are calling on the government to cut taxes, lower interest rates and reduce regulatory costs. They warn that the high cost of doing business is putting pressure on enterprises and limiting their capacity to expand and create jobs.
The demands, captured in a September 2026 survey report by the Central Bank of Kenya (CBK), highlight growing concerns over access to affordable credit, multiple licensing requirements, high production costs and uncertainty surrounding tax policies. Business leaders want the government to introduce measures that would ease financial pressure on companies, improve competitiveness and create a more predictable environment for investment.
Small and medium-sized enterprises (SMEs), which often operate with limited financial reserves, are particularly affected by expensive borrowing and stringent lending requirements. According to the survey, 26.7 per cent of respondents described access to bank loans as difficult or very difficult. They cited demands for collateral and lengthy approval processes as major obstacles.
The findings also showed that 53 per cent of firms relied on their own resources to finance operations in September, while 28 per cent identified bank loans as their primary source of funding. These figures underscore the financing challenges facing businesses that need additional capital to purchase equipment, expand production, pay workers and enter new markets.
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On taxation, the CEOs are urging the government to adopt stable and predictable policies. They argue that frequent or poorly coordinated changes make it difficult for companies to plan investments and manage their cash flows. They also want the private sector consulted before new tax measures are introduced, allowing businesses to assess their likely impact and prepare for implementation.
In addition, the executives are calling for lower licence fees, simpler regulatory procedures and fewer overlapping requirements imposed by national and county governments. Among their proposals is the consolidation of permits to reduce duplication, shorten approval timelines and ease the administrative burden on businesses. They argue that simplifying import clearance procedures would also help companies obtain raw materials and production equipment more efficiently, reducing delays that increase costs and disrupt operations.
Beyond taxation and credit, the business leaders have identified electricity costs, transport infrastructure and unreliable digital systems as important factors affecting productivity. They want the government to lower energy costs and improve electricity reliability, noting that expensive or interrupted power supplies can increase production expenses and reduce the competitiveness of locally manufactured goods.
Improved roads, transport networks and digital infrastructure are also among their priorities, particularly for firms that depend on efficient logistics, online transactions and timely access to markets. Reducing these costs could help businesses redirect resources towards expansion, technology, employee training and recruitment.
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The survey also raised governance concerns. Respondents called for stronger respect for the rule of law, more effective action against corruption and better coordination across government institutions. The executives want public resources managed more efficiently and wasteful expenditure reduced, arguing that a stable policy environment is essential for long-term business planning.
Furthermore, they have called for development policies that extend beyond election cycles, enabling investors to make decisions based on consistent economic priorities rather than uncertainty over future government direction.
Geopolitical tensions and other external pressures were also identified as risks affecting businesses, reinforcing calls for lower operating costs and improved access to financing.
By Hillary Muhalya
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