Chief executives in East Africa have regained confidence in their companies’ prospects for the next year, emerging among the most optimistic on the continent, yet their faith in their respective countries’ economic stability remains far lower than that of their peers globally.

The share of CEOs expressing confidence in their companies’ growth has risen to 76 percent from 56 percent last year, while those with similar trust in their countries’ economies increased only slightly, to 62 percent from 60 percent.

The pace at which East African CEOs are regaining confidence in their firms is also faster than elsewhere on the continent, with an overall 79 percent showing that belief, up from 64 percent last year, according to a new survey.

Accounting firm KPMG’s annual global CEO survey shows that, compared to their global and continental counterparts, the region’s business leaders are also less confident in the growth of the world economy in 2026.“East African CEOs remain broadly confident in their companies’ growth prospects. However, growth prospects confidence tapers when viewed beyond the organisation,” notes the KPMG 2025 CEO Outlook.

The study sampled views from 130 CEOs of leading companies across the continent, with Kenya, Tanzania, and Rwanda representing East Africa.

In the region, only half of the business leaders expect the global economy to grow significantly next year, a modest rise from 48 percent. Among their counterparts elsewhere, this optimism increased from 53 percent to 60 percent.

Globally, 81 percent of CEOs expect strong economic growth in their countries, 68 percent expect the global economy to expand, and 79 percent believe their companies will record strong growth, a trend similar to Africa.

This suggests that, for most business leaders worldwide, domestic economic growth, global stability, and company performance remain closely aligned. This was also true in East Africa two years ago, but the survey shows a growing divergence.

Rising optimism in company prospects without a matching outlook for local and global economies indicates that the region’s C-suite leaders are increasingly decoupling business performance from broader economic conditions, even as geopolitical fragmentation and uncertainty persist.

KPMG’s Africa CEO Ignatius Sehoole suggests that the renewed confidence in company performance, despite weaker sentiment about global and local economies, may stem from opportunities seen in technology.“Five years on from the global pandemic, the world continues to experience heightened geopolitical tensions and economic uncertainty,” he said. “Yet, despite these challenges, it is encouraging to observe a sense of cautious optimism among African CEOs, particularly around workforce development and the prioritisation of Artificial Intelligence (AI). These factors are driving operational efficiency and underpinning long-term sustainable growth.”The survey shows that across the continent, executives are increasingly using new technologies, including AI, to mitigate risks such as cyber threats and skills shortages that previously constrained growth.

While most CEOs generally believe new technologies will shape their organisations’ fortunes over the next year, East African CEOs show the highest confidence in their impact.

Eighty percent of the region’s executives believe the cost of technology infrastructure will influence their firms’ success next year, compared with 65 percent in West Africa and 73 percent in Southern Africa.

Similarly, 74 percent believe competition for AI talent will determine business success, compared with half in West Africa and 60 percent in Southern Africa.

Issues that dominated CEOs’ concerns last year, such as supply chain disruptions and inflation, are now cited by fewer leaders, with only 54 percent and 68 percent flagging them respectively.

Across Africa, however, companies are increasing their bets on AI for growth, more so than their global peers. More than a quarter of African CEOs plan to allocate over a fifth of their budget to AI integration in the next 12 months, compared with only 14 percent elsewhere.“Africa CEOs increasingly see AI not as a tool for future growth, but as an immediate lever for operational efficiency, better decision-making, and long-term resilience,” KPMG reports.

East Africa also leads in the number of CEOs prioritising the retention and retraining of high-potential talent (72 percent), and in hiring new staff with AI and technology skills (62 percent), reflecting strong leadership in adopting technology to drive growth despite economic headwinds.

A separate survey by audit firm PwC in March showed that while the region’s CEOs were cautiously optimistic about company growth and slightly more upbeat about the wider economy, they largely view AI as a game changing driver of business performance over the coming year.

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