Kenyan businesses face significant challenges this Christmas season due to weak consumer spending and persistent cash flow issues, despite initial hopes for a holiday sales surge. A recent Central Bank of Kenya (CBK) survey reveals that most firms are grappling with muted demand and a liquidity crunch exacerbated by government pending bills.

• The CBK’s September 2025 CEOs’ Survey highlighted that elevated cost of doing business and reduced consumer demand are the primary concerns for firms.
• Although 54.8 per cent of CEOs anticipate an increase in demand in Q4, and 54.4 per cent foresee higher sales, the overall economic climate remains tight.
• Business leaders have recommended that the Kenya Kwanza government fast-track value-added tax refunds, clear pending bills, and engage more closely with the private sector.