Kenyan companies are increasingly relying on internal funds for operations and expansion due to high borrowing costs and strict lending conditions, according to a recent Central Bank of Kenya (CBK) survey.

• The September 2025 CEOs Survey indicates firms are prioritizing their own resources over bank loans, despite a slight drop in lending rates since August 2024.
• The CBK noted that banks remain risk-averse, viewing Small and Medium-sized Enterprises (SMEs) as high-risk borrowers.
• 78 percent of firms have adopted technology and automated key operations in the past year, with the ICT, manufacturing, and financial sectors leading this digital transformation.
• Despite funding constraints, business leaders are optimistic about 2026, expecting growth driven by innovation and market expansion, while acknowledging challenges like high operational costs and weak demand.