Businesses urged to build resilience amid global shocks
Business
By
Noel Nabiswa
| Oct 14, 2026
Kenyan businesses have been urged to diversify markets, strengthen supply chains and explore new investment opportunities to withstand global economic shocks and sustain growth.
Speaking during KCB’s PowerTalk forum in Nairobi yesterday, industry leaders said geopolitical tensions, volatile energy prices, climate risks and shifting interest rates continue to expose businesses to rising costs and economic uncertainty.
They noted that while these disruptions pose significant risks, they also present opportunities for businesses to expand into new markets, increase local manufacturing and strengthen regional trade.
Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui urged businesses to take advantage of opportunities in infrastructure, agriculture and manufacturing, emphasising the need to increase local production and value addition.
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“Kenya is a basket of opportunities, and I really want to urge the people who are in this room to see those opportunities,” said Kinyanjui.
“You must manufacture here, you must start value addition here, and you must create employment.”
KCB Group Chief Executive Paul Russo said businesses must adopt a long-term approach to investment and growth, regardless of changes in the political environment.
“Our agendas must go beyond elections. Your business must go beyond. We can’t have a start-stop because of elections,” said Russo.
He added that building strong relationships with customers and supporting business transformation were essential to driving economic growth.
The forum also highlighted East Africa’s growth potential, with regional economies projected to expand faster than the wider sub-Saharan African region.
KCB Group Treasurer Anthony Mulisa said East African economies were growing at an average of between 5.5 and six per cent, compared with between 4.1 and 4.3 per cent for sub-Saharan Africa.
He expressed optimism that regional economic growth would improve in 2027.
Infrastructure development, regional connectivity, agricultural value addition, mining, oil and gas, and the meetings, incentives, conferences and exhibitions (MICE) sector were identified as key areas for investment.
However, speakers warned that Kenya’s relatively stable macroeconomic environment remains vulnerable to external shocks, including conflict in the Middle East, which could drive up fuel prices, and climate-related disruptions that could affect agricultural production and increase food costs.
Higher global interest rates could also divert investment away from emerging markets, putting additional pressure on businesses and households.
The forum called for a more predictable business environment, with stable tax policies, streamlined licensing requirements and fewer overlapping levies to reduce the cost of doing business.
Participants also stressed the need to improve access to affordable financing, with repayment periods suited to businesses' cash flows and investment needs.
KCB Bank Kenya Managing Director Annastacia Kimtai said the engagement provided an opportunity to examine the challenges and opportunities shaping the business environment and how financial institutions could support enterprises.
KCB Bank Kenya Director of Corporate Banking Peter Ng’eno said businesses needed to strengthen economic resilience, diversify markets and improve productivity to remain competitive.
“As KCB, we remain committed to being a catalyst in this journey by providing the right financial solutions, strategic partnerships, and platforms that accelerate enterprise growth and position Kenya as a competitive investment and trade destination,” said Ng’eno.
Businesses were encouraged to strengthen financial management and governance, diversify supply chains and explore alternative sources of funding beyond traditional lending.
The forum underscored the importance of partnerships between businesses, financial institutions and government in unlocking investment opportunities, expanding into regional markets and creating employment.