KNCCI Barometer Report Q3 Launch
The Kenya National Chamber of Commerce and Industry launched the KNCCI Business Barometer Report Q3/2024 at the Radisson Blu Hotel at Upperhill,
Nairobi.
The KNCCI Q3 2024 Business Barometer Report aims to elucidate businesses’
expectations for Q3 2024, drawing insights from their Q2 2024 experiences regarding financial performance and the broader business environment. This provides a forecast into the country’s business environment ensuring that all our efforts in advancing the
economy are proactive.
This particular report was focused on the Why; reasons behind the different expectations of the business enterprises identified.
“The businesses are more confident in the reduction of their primary input cost compared to Q2 though manufacturing is coming out at the least optimistic sector on this metric. There is a need for increased efforts to support this struggling yet vital
sector,” Dr. Eric Rutto, KNCCI President.
One of the most significant insights from this report is the resilience and adaptability of our SMEs. It is encouraging to see that similar to Q2, majority of businesses sampled are
optimistic about the growth of their revenue (71%) and staff size (66%) in Q3.
Despite Bthe challenges posed by the global economic downturn, our small and medium Benterprises have demonstrated remarkable tenacity. They have pivoted, innovated, and found new ways to thrive. This spirit of resilience is a testament to the entrepreneurial
spirit that is the backbone of our economy.
The Chief Guest, the PS State Department of Investment Promotion, Abubakar Hassan
Abubakar commended the good work KNCCI on the unwavering commitment to
advancing the interests of the business community. “As the State Department of Trade, Bwe are committed to addressing these issues head-on. We will work closely with the KNCCI and other stakeholders to create a conducive environment for business growth.
This includes streamlining regulatory processes, enhancing access to finance, and fostering Ban ecosystem that encourages innovation and competitiveness,” Abubakar Hassan Abubakar – PS, State Department of Investment Promotion.
Unfavourable taxes and levies (44%) was identified as the main cause of the
unfavourable regulatory environment challenge. “The best thing this government can do to the business community is to pay pending bills,”
Kiprono Kitonny, Chairman, Nairobi
Securities Exchanges (NSE). This will guarantee commercial vibrancy in Kenya.
In his remarks, Patrick Nyangweso, KNCCI CEO, recognized the significant challenges and opportunities in the business community.
“The report is an instrument that will be used to support and empower our members with information they need to decide on resource allocation to improve the business landscape in Kenya, Patrick Nyangweso,” KNCCI CEO.
The education and agriculture sectors are most optimistic about a drop in primary input costs, while hospitality & tourism, and manufacturing are less optimistic. Majority of businesses (69%) are intentionally applying some climate change mitigation and
adaptation actions in their business operations. The mining and energy sectors lead in applying climate mitigation and adaptation actions, while the retail and wholesale sector
lags behind. Similar to Q2, businesses expect limited financial resources (32%), unfavorable regulations (22%), and supply chain instability (22%) to majorly affect their performance in Q3, high interest rates (31%) and limited access to credit (30%).
In the Q3 Business Barometer Survey, KNCCI engaged 1011 businesses across the
country, in all sectors, both members and non-members of KNCCI, and from the formal and informal sectors. The data collection was conducted through an online survey spanning 2 weeks as well as physical interviews in Nairobi.
The physical interviews using
enumerators is an addition to the data collection efforts of the Q2 Barometer Survey that only employed the use of an online survey.
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