Factories in Crisis, Hospitals in Distress as CEOs Warn of Uneven Recovery-CBK Study
Kenya’s economy may be on the mend, but two sectors-manufacturing and health-are buckling under financial strain, a CBK survey of CEOs shows...
✨ Key Highlights
A new Central Bank of Kenya (CBK) survey reveals an uneven economic recovery, with the manufacturing and health sectors struggling financially despite broader economic growth. While sectors like agriculture, finance, ICT, and tourism are expanding, manufacturers face severe liquidity issues and high operational costs, while healthcare providers battle liquidity shortfalls from delayed government payments and cuts in donor funding.
- Manufacturing sector margins are described as “razor-thin” due to soaring energy bills, taxes, and logistics charges.
- The CBK conducted the Post-MPC Chief Executive Officers (CEOs) Survey.
- Hospitals and health programmes face delayed government payments and global donor funding cuts due to shifting U.S. and international policy priorities.
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CBK Launches KSh 50Bn Tap Sale After Rejecting KSh 228Bn in Bond Bids - August 2025
The Central Bank of Kenya (CBK) has launched a KSh 50 billion tap sale of two infrastructure bonds. This action follows the August 2025 infrastructure bond auction, which saw a significant oversubscription where the CBK rejected KSh 228 billion in bids. The CBK's decision to accept only a fraction of the bids was a strategic move to maintain a low-interest rate environment while financing projects. A new CBK survey provides context, revealing an uneven economic recovery in Kenya. The survey found that while sectors like agriculture, finance, and ICT are expanding, the manufacturing and health sectors are struggling with severe liquidity issues and high operational costs.
