Kenyan Importers Urged to Strengthen Risk Management Amid Global Volatility

Kenyan importers are being urged to rethink their strategies and strengthen risk management frameworks as global economic uncertainty, geopolitical tensions, and supply chain disruptions continue to reshape trade dynamics. This was the key message during the Absa Bank Markets Upskilling event, where industry experts shared insights on navigating the volatile operating environment and building resilient businesses.

Speaking during the session, Absa Bank Kenya CEO Abdi Mohamed emphasised the importance of strategic positioning in uncertain times. He noted that businesses must adapt quickly to a rapidly evolving environment shaped by persistent geopolitical tensions, global trade disruptions, and pressure on supply chains.

“With the ongoing developments in the Middle East combined with uncertainty, we are seeing key global economies contributing to sustained volatility in global prices, financial markets, and generally global exchange markets. These conditions are directly influencing business performance, affecting input costs, pricing decisions, currency exposure, and their unmet demand for capacity value,” said Mr. Mohamed

“For importers and exporters, success in this environment requires more than participation alone. It calls for timely insights, timely intelligence, disciplined risk management, and working with partners such as Absa who have deeper understanding of global financial markets and local operating conditions,” he added.

He maintained that resilience and adaptability are becoming critical competitive advantages and success for businesses will be determined by how they position themselves in this complex operating environment.

Reinforcing this message, Absa Bank Kenya Corporate and Investment Banking Managing Executive James Agin explained that effective risk management is no longer optional but essential for growth.

“Risk management makes sense in this environment. It is not just about avoiding uncertainties but also converting these uncertainties into opportunities. These small nuances are how businesses are going to win in an environment like this. As Absa, we want to build resilience, invest in growth, and work with you to make your stories great,” he said.

As the market continues to evolve, importers were also urged to hedge their foreign exchange exposure, prioritise liquidity management, reallocate their assets across the different currencies and manage foreign exchange and interest rates plus commodity.

The Absa Bank Markets Upskilling event is a focused platform for education aimed at strengthening the ability of businesses to anticipate the market conditions, manage risk productively, and identify opportunities across diverse sectors such as trade, manufacturing, agriculture, energy, and other sectors.