Hospitality and tourism sector players are the most confident of revenue growth in the second quarter of 2024, according to a survey by Kenya National Chamber of Commerce and Industry.
Unlike other sectors, the two exhibited a stronger sense of optimism, with 41 per cent extremely confident, 29 per cent moderately confident, 18 per cent slightly confident, and 12 per cent not confident of increasing their revenues.
Respondents in the agriculture sector gave mixed returns with 17 per cent expressing extreme confidence in revenue growth, 46 per cent moderately confident, 34 per cent slightly confident, and three per cent not confident.
The energy sector also shows a positive outlook, with 33 per cent extremely confident, 50 per cent moderately confident, and 17 per cent not confident.
This confidence stemmed from factors like increasing global energy demands and strategic investments in renewable energy sources.
The education sector reflects a balanced sentiment, with 33 per cent each expressing extreme, moderate, and slight confidence in revenue growth.
This cautious optimism could be linked to on-going transformations in educational delivery methods and funding challenges.
Kenya National Chamber of Commerce & Industry Chief Executive Officer Patrick Nyangweso said financial constraints, regulations and supply chain instability emerged as the major obstacles for business expansion in Q2 of 2024.
“Businesses are optimistic for expansion in Q2, however 34 percent of the firms polled cited financial constraints and a major worry, 16 percent are concerned with regulatory environment and 14 percent cited supply chain instability as major obstacle,” said Nyangweso.
Healthcare, financial services, and mining sectors reported lower levels of extreme confidence in revenue growth.
However, the mining sector stands out with 100 per cent moderate confidence in revenue growth, compared to 75 per cent in Financial Services and 69 per cent in Healthcare.
Majority of businesses remain optimistic in the growth of their workforce size and revenue in Q2.
The energy sector is the most confident in workforce size growth, while professional services is at the opposite end of the spectrum.
While 39 percent of businesses foresee a decrease in the cost of primary inputs, an equivalent proportion 39 per cent anticipates an increase.
The energy sector is most optimistic about input cost reduction, while ICT and professional services sectors may experience significant fluctuations.
Transport and energy sectors recognise that supply chain instability and climate change might deter their performance more than any other sectors, respectively.
Majority of the sampled businesses fell under the micro category with less than 10 employees and below Sh1 million in annual revenue.
