Some of the headwinds that will hinder growth, the bosses, listed as high interests, local political temperature, and the depreciation of local currency against major currencies such as the US dollar.

“In terms of domestic factors that could constrain their growth, respondents continued to highlight increased taxation, the business environment (cost of doing business) and the economic environment (high inflation),” reads the CEO Survey that was released today by the Central Bank of Kenya (CBK).

“Additionally, respondents noted that the anti-government protests had adversely affected business activity. Respondents also highlighted that pending bills and VAT refunds that have been outstanding for a long time were creating cash flow challenges for businesses,” it added.

However, business executives are optimistic that declining inflationary pressure will spur growth in sectors such as agriculture, among others.

The depreciation of the Kenyan shilling, CBK argue, was a blessing in disguise as local manufacturers opted for cheaper alternatives within.

Kenya’s currency has been losing its value over the last few years, despite inflows from remittances and funds from the International Monetary Fund (IMF).