- Businesses in Kenya are facing the impact of tightened monetary policy that is resulting in high lending rates.
- The government is under increasing pressure from investors to settle huge pending bills.
- At the same time, the Kenya Shilling is steadily losing ground against major world currencies, piling pressure on external debt obligations.
In the second half of the year, business optimism for companies and sectoral growth prospects in Kenya appears to be subdued, largely influenced by the dual challenges of high taxes and a weakening Shilling.
The government’s task of balancing rising debt levels with tax revenue generation is taking center stage in a scenario complicated by other economic factors.
A confluence of high-interest rates within the banking sector, a politically sensitive environment, the accumulation of pending bills that impact private sector cash flow, and the depreciation of the Kenyan Shilling is painting a complex business environment.
The Shilling has…
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