A recent Central Bank of Kenya Market Perceptions Survey reveals that seven in ten CEOs expect the expiration of the African Growth and Opportunity Act (AGOA) to negatively impact their businesses, leading to increased import costs and reduced export volumes.

• Kenya exported $470 million worth of apparel to the U.S. last year, supporting over 66,000 direct jobs.
• The Kenya Private Sector Alliance (KEPSA) and Parliament have urged the U.S. to renew AGOA for at least 16 years or grant a two-year transition window.
• The U.S. recently reintroduced a 10 percent reciprocal tariff on Kenyan imports under the "America First" trade framework.

Kenyan bank chief executives anticipate an increase in private sector lending following the Central Bank of Kenya's (CBK) recent interest rate cut. This optimistic outlook is attributed to a stable macroeconomic environment and low inflation, as revealed by the CBK’s Market Perceptions Survey.

• The CBK lowered the Central Bank Rate (CBR) by 25 basis points to 9.25 percent from 9.5 percent on October 7.
• Governor **Kamau Thugge** stated the move aims to maintain price stability and anchor inflation expectations.
• Credit growth could be constrained by reduced disposable incomes and cautious lending practices linked to the Risk-Based Pricing Model.