More firms forgo profit margins in customer race

CBK

The Central Bank of Kenya.

Photo credit: File | Nation Media Group

Kenyan firms are absorbing rising operating costs, largely driven by the Middle East crisis, to protect sales amid weak consumer demand, a new Central Bank of Kenya (CBK) survey shows.

The findings indicate that most businesses are absorbing higher production and operating costs rather than fully passing them on to consumers, squeezing profit margins and potentially reducing shareholder payouts for 2026.

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Note: The results are not exact but very close to the actual.