Kenya has been one of Sub-Saharan Africa’s (SSA) best performers over the last decade and a half, delivering consistently strong growth since 2008. Despite the COVID-19 pandemic, Kenya’s economy is forecast to grow by 4.9% YOY in 2021 and 5.2% in 2022, driven by strong credit growth, favorable conditions for consumers, and upbeat activity across sectors. Manufacturing, construction, and export-oriented industries, such as agriculture, will drive the most growth for the country.
However, certain sectors face protracted weakness: the tourism sector—and consequently demand for certain premium consumer products—will remain depressed through 2022, and fragile public finances will sap demand from an otherwise buoyant economy. Meanwhile, Kenya faces elevated risks of unrest that will likely cause business sentiment to weaken ahead of the August 2022 election.
What does this mean for your 2022 strategic plans? Executives need to focus in on demand trends in their industry, their channel partner capabilities, and new opportunities for growth. Ensure you follow these three steps to stay ahead of the competition in 2022:
- Review product portfolios to best capitalize on rising demand.
- Focus on resilient customer groups in large urban areas.
- Review distributors’ ability to cope with operational disruption during the election.
Read the full Kenya Market Review for a detailed overview of the market, 2021 scenarios, and macroeconomic trends, with their impact on key industries. This report highlights key risks facing the country’s still-strong economy and looks at how businesses can capitalize on rising demand in robust industries while focusing on resilient customer segments in industries facing greater uncertainty.
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