I would encourage consolidation, mergers and acquisitions so that companies grow in scale to think beyond Nairobi. Companies must also invest in people. When there is a downturn don't stop investing in people.
Chandaria Industries Group CEO Darshan Chandaria: "There are signs that the second half of 2024 could be more positive"
2023 has been a testing year of inflation on all fronts. As we look forward to the first six months of 2024, we must be ready to face similar challenges, however, one very positive sign is that global inflation is easing as we see signs of interest rate cuts from many developed markets.
The weakening of the shilling has slowed down over the last month. If this continues, it should pave the way for interest rates to be more stable at some point in 2024, meaning borrowing from banks for business growth will become viable again.
Consumer disposable income and demand were under pressure this year and this will continue into 2024, so businesses have to be ready for this. The cost of doing business will also be under pressure given the government's new legislation. Overall, 2024 will be a challenging year for all. There are however signs that the second half could be more positive.
KCB Group CEO Paul Russo: "We are optimistic for stronger growth in the East Africa economy"
We are optimistic that we will start to see stronger growth in the East African economy in the coming year, neutralising the recession narrative. We foresee improvement in the business landscape, and we are well-positioned to support business recovery and the economy to rebound.
There has been rising consumer and business confidence and easing inflationary pressure, pointing to an optimistic future. Inflation across the region is easing as domestic food price inflation falls on the back of improved agricultural production.
We are optimistic that the various governments in the region will keep up with robust fiscal and monetary interventions to support sustained economic growth. We see currencies and interest rates beginning to stabilise in the wake of a slowdown in rate raises in the US and Europe, effectively spurring growth.
Centum Investments PLC CEO James Mworia: "There is immense opportunity for investors who take a medium-term outlook"
The Kenyan economy traditionally gathers momentum beginning the second year after every General Election, and therefore 2024 is a year of great promise in economic terms. There is immense opportunity for investors who take a medium-term outlook, given that growth traditionally peaks just before the next election cycle.
In the long term, Kenya has proven to be a resilient economy underpinned by a skilful and diverse workforce, underwritten by democratic governance and peaceful transition of power.
Federation of Kenya Employers (FKE) CEO Jacqueline Mugo: "The outlook for 2024 is blurry."
The domestic economy will continue to experience a decline in both demand and production, a very unfortunate situation. As you are aware, several tax measures in the Finance Act 2023 will become effective from January 1, 2024.
This will increase pressure on cashflows in organisations. The first half of 2024 will also see a drop in food supply. The good season we have had, as far as food supply is concerned, is coming to an end.
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In the labour sector, employees are likely to see a further decrease in their disposable income as the 2.75 per cent statutory contribution to the Social Health Insurance Fund (SHIF) kicks in.
Deepak Dave of Autonomi Capital: "Government must get serious about slashing the tax burden"
The economy will continue to struggle unless the government gets serious about slashing the tax burden that's been uncontrollably imposed; and going through the difficult decisions of restructuring the debt burden.
I predict shrinkage of about two per cent in real terms, but more importantly, the per capita income will drift down five per cent unless hard decisions are taken.
Privatisation will not go as smoothly as planned. There are still too many examples of entrenched interests winning mandates instead of opening opportunities to qualified outside firms.
Kenya Private Sector Alliance (Kepsa) CEO Carole Kariuki: "The hope is for a better year"
Businesses have been making lots of adjustments to a business environment that has been impacted by drought, then floods, increased interest rates, forex challenges, effects of Covid-19 on livelihoods and also increased taxes and levies both in number and amounts.
Kenyan business has always been resilient and very innovative. Despite these challenges, businesses are finding new ways to be productive and the desire is that matters climate will stabilise, the impact of Covid-19 will reduce and the business environment will improve - both on currency stabilisation.
They will have a more predictable tax policy that encourages the production and growth of businesses - both new ones and the expansion of existing ones as a better source of generating revenue and jobs.
As Kepsa, we look back at our partnership with government, development partners and other partners. We are confident this will continue and even deepen as the current administration settles more in government.
Tropical Brands and Oxygene Communications Chairman Linus Gitahi: "Year to boost exports"
It is the year for manufacturers to focus on exports. The depreciation of the Kenya shilling is a boon for exporters. It is an opportunity for Kenya to increase exports. It will also be a year to manage costs.