A stable Kenyan Shilling, favourable weather conditions, low inflation and stability in the macro economy globally has seen the captains of industry in Kenya express optimism in the country's economy this year.

The Kenyan Shilling has remained stable over the past year against the US dollar and other major currencies, offering business leaders predictability in the health of the economy. At the moment, the local currency in exchanging at an average of 129 units against the US Dollar.

“Respondents reported improved growth prospects for the global economy in the next 12 months, supported by declining interest rates and low inflation. However, concerns around geopolitical tensions and uncertainty on the impact of tariffs on trade remain,” a survey released on Tuesday by the Central Bank of Kenya (CBK) states in part.

The survey, which was carried out ahead of the CBK Monetary Policy Committee meeting of 5th February targeted CEOs from over 1,000 companies.

CBK received input from CEOs of agriculture, financial services, mining, health, real estate, transportation, manufacturing, energy, and tourism industries.

Participants in the research noted that the country's economic mainstay, agricultural sector, is projected to record strong expansion, powered by favourable weather conditions as well as increasing uptake of Kenya's fresh produce exports in the overseas market.

At the same time, CBK survey indicated that the manufacturing sector, which has remained challenged for years will perform better in 2025 on account of stability in energy costs, stable exchange rate, and the apex bank's move to lower borrowing costs.

According to CBK Governor Dr. Kamau Thugge, the National Treasury projects that Kenya will experience 5.5 percent economic growth this year, a forecast that falls within the International Monetary Fund's prediction of 5 percent expansion in the year under review.

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