Firms in the construction industry remain optimistic about the prospects of economic growth despite the prevailing difficult operating environment which has seen the highest growth in input prices.
A survey by American firm S&P Global commissioned by Stanbic Bank revealed that although business confidence amongst surveyed companies in manufacturing, construction, wholesale and retail, services, and mining has been weak since July, construction firms are hopeful on account of the government’s push for affordable housing projects supported by the recently introduced housing levy.
In the survey, conducted between July and October, it emerged that only two in every 10 companies plans to increase branches, raise output capacity or add new products in the next year.
Since last year, Kenyan firms have been battling rising operating expenses largely due to soaring prices of fuel, electricity, and raw materials amidst amid weakening shilling against major global currencies as a result of lingering global supply constraints amid a persistently weakening shilling against major global currencies and taxation pressures, including the 1.5 percent housing levy on gross payrolls.
