German businesses give thumbs up to Kenya economy

The majority of German businesses in Kenya are confident in the country’s economic environment despite disruptions caused by the Covid-19 pandemic.

Data by delegation of German Industry and Commerce in Kenya (AHK-Kenya) indicates about seven in 10 (73 percent) of the businesses approved of Kenya’s current economic environment either as good (29 percent) and satisfactory (44 percent). Only 27 percent do not.

“These numbers once again show that, despite all the challenges companies face in the present situation, the German-Kenyan business community is well set for successful operation in Kenya – and from this regional hub for the entire Eastern African region,” AHK-Kenya Delegate Maren Diale-Schellschmidt said.

This comes at a time when customer’s purchasing powers remain depressed amid job losses, pay cuts and unpaid leaves attributed to declining revenues among firms.

The AHK bi-annual survey, which was based on data collected in the first weeks of April 2021, also covered other eastern African countries such as Tanzania, Uganda, among others.

While 53 percent expect business development to remain constant, some 44 percent were hopeful for improvement.

Biggest risks to economic development in the next 12-months was cited as demand (68 percent), political-economic conditions (35 percent), exchange rate (32 percent), financing (29 percent) and legal certainty (29 percent).

“What is especially encouraging is that we notice less mention of shortage of skilled workers as a hindering factor,” AHK Country Director Diale-Schellschmidt added.

Some of German businesses operating in the country include PricewaterhouseCoopers (PwC), Bosch, Ecoligo, GIZ-Kenya, Allianz, DHL among others.

Source: Business Daily Newspaper.

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