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Inflation, cyber risks among top concerns for Kenya CEOs
The survey found that half of the CEOs in Kenya had not made any climate-friendly investments within the preceding 12 months, majorly due to funding deficiencies and regulatory complexities.
Inflation and cyber risks are among key business threats ranked as top concerns for chief executive officers (CEOs) in Kenya, a new survey shows, resulting in cautious confidence in the economy where 48 percent of the corporate bosses believe it will improve while 25 percent see it stagnating in the next 12 months.
The annual PwC CEO survey also lists other external risks such as macroeconomic volatility and geopolitical conflicts as notable threats worrying CEOs in the country.
“Despite the lowering global inflationary pressure, Kenyan CEOs view inflation as a major threat to their business...This is paired with global trends such as cyber risks that threaten Kenya’s fast-paced digital landscape,” notes PwC.
Over 65 percent of the surveyed CEOs, however, indicated strong confidence about the economic viability of their businesses for more than 10 years if they were to continue on their current path.
The survey, which was targeted at leaders of organisations with revenues of $100 million (Sh12.9 billion) and above, found that half of the CEOs in Kenya had not made any climate-friendly investments within the preceding 12 months, majorly due to funding deficiencies and regulatory complexities.
Out of the remaining half, 26 percent reported that climate-friendly investments had decreased their costs in the preceding five years, while 42 percent said that such investments had increased their revenue within the same period.
“Companies may have to accept lower returns on such investments. However, in the last 12 months, 35 percent of Kenyan CEOs have not accepted lower rates of return for climate-friendly investment, indicating a view to benefiting from potential returns,” the report reads.
On tech deployment, CEOs predict that in the next three years, Artificial Intelligence (AI) will be systematically integrated into their business platforms, with key areas of focus being business processes and workflows, workforce and skills, as well as new products or services development.
“An increasing number of Kenyan CEOs (50 percent) said to personally trust having AI embedded into key processes, compared to their East African (42 percent) and Global (33 percent) counterparts,” notes the survey.
In a highlight of elevated economic diversification in local business strategies, 53 percent of CEOs indicated that their companies had begun competing in sectors and industries in which they hadn’t previously competed.
Overall, 38 percent of CEOs expressed confidence in their company revenue growth in the next 12 months while 53 percent expressed confidence in similar outcomes in the next three years.
