NAIROBI, Jan. 31 (Xinhua) -- Kenyan business leaders are hopeful that the country would register a positive economic growth this year despite the disruption expected to be caused by the August elections, the Central Bank of Kenya (CBK) said in a survey released on Monday.
The chief executives' optimism, according to the apex bank, is due to reduced power tariffs, improved consumer demand, a lower inflation and increased government investment in infrastructure.
"Risks posed by the COVID-19 pandemic have moderated as the pace of vaccination picks up. Recovery of the Kenyan economy will be supported by the recent announcement on reduced energy costs even as specific sectors that were hardest hit by COVID-19 continue to recover," CBK said.
The chief executives noted that political stability, a stable macroeconomic environment, an enabling business environment and stability of the Kenya shilling would strengthen the economic outlook this year.
However, among the respondents, those in the agriculture and manufacturing sectors were troubled by rising input costs, global supply chain disruptions, as well heightening political activity which they noted may lead to scaling down of operations in the industries as businesses adopt a "wait and see" approach.
The CBK survey interviewed 230 chief executives of organizations in sectors including agriculture, mining and energy, manufacturing, wholesale and retail trade, tourism, and hotels and restaurants. The sectors account for over 74 percent of Kenya's GDP.
According to the World Bank, Kenya's economy was expected to grow by 5 percent in 2021. ■