Kenyan executives are cautiously optimistic about the economy, with 60% expecting an improvement in global conditions over the next year and 48% anticipating local gains, according to PwC’s 2025 Chief Executive Officers (CEO) Survey.
But while inflation (35%), macroeconomic volatility (28%), and cyber risks (25%) remain key concerns, a striking 65% of CEOs are confident in their companies’ long-term viability, driven by a push for strategic reinvention.
“Reinvention as a strategic imperative remains the main theme,” says Peter Ngahu, PwC Eastern Africa’s Regional Senior Partner. “Kenyan CEOs are focused on innovation and adapting to evolving market conditions.” That reinvention is unfolding in two critical areas: artificial intelligence and sustainability.
Half of the CEOs trust Artificial Intelligence (AI) in key business processes and are aggressively embedding it into technology platforms (50%), workflows (48%), and workforce skills development (33%) over the next three years. Automation and data-driven decision-making are top priorities as companies seek to enhance efficiency and customer experiences.
With AI’s rapid adoption, companies are increasingly using it for predictive analytics, fraud detection, and personalized customer interactions. The shift underscores a broader regional trend where businesses leverage digital transformation to stay competitive in a volatile economic landscape.
The survey reveals that amid economic uncertainty, companies are diversifying revenue streams by developing new products (48%), targeting fresh markets (43%), and expanding into untapped sectors (53% over five years). Yet, despite a growing push for sustainability, 50% of CEOs admit they haven’t made climate-friendly investments, citing regulatory hurdles (33%) and funding gaps (23%).
According to the survey, 42% of Kenyan CEOs have already seen revenue boosts from sustainability initiatives, including renewable energy adoption and greener supply chains. Sustainability metrics are also shaping executive incentives, with 55% of CEOs now having compensation linked to emissions reduction and resource efficiency targets.
Ngahu notes that climate adaptation in the region requires “coordinated efforts to build resilience.” With regulatory frameworks evolving and green financing options expanding, more businesses could soon follow the early movers profiting from sustainability, he states further.
Kenyan CEO’s cautious optimism mirrors broader sentiment across Sub-Saharan Africa, where 63% of CEOs expect global economic improvements, spurred by lower inflation and enhanced energy security. But as in Kenya, regulatory complexity and funding barriers remain persistent obstacles.
