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Reuters
5 days ago
- Business
- Reuters
Kenya private sector activity contracts for first time in seven months, PMI shows
NAIROBI, June 5 (Reuters) - Kenya's private sector activity contracted in May for the first time in seven months, hurt by a slowing performance in the construction, wholesale and retail and services sectors, a business survey showed on Thursday. The Stanbic Bank Kenya Purchasing Managers' Index fell to 49.6 in May from 52.0 a month earlier. Readings above 50.0 indicate growth in business activity, while those below that signal contraction. "Total business output contracted at the fastest rate in 10 months in May, although the overall downturn was only slight," Stanbic Bank Kenya said in comments accompanying the survey. "Declines were generally driven by the construction, wholesale and retail and services sectors, whereas output increased in agriculture and manufacturing." Business expectations for the next 12 months were subdued in May, falling to their second-lowest level on record. Just 4% of surveyed firms expect improved performance in the period, the survey said. "Consumers remain hesitant to spend due to concerns about their economic state and the dim outlook," Christopher Legilisho, an economist at Stanbic Bank, said. Kenya's inflation (KECPI=ECI), opens new tab fell to 3.8% year-on-year in May from 4.1% a month earlier, data from the statistics office showed. The economy expanded by 4.7% last year, down from 5.7% in the previous year. The finance ministry forecasts growth of 5.3% in 2025.
Reuters
06-05-2025
- Business
- Reuters
Kenya's private sector growth hits 27-month high in April, PMI shows
NAIROBI, May 6 (Reuters) - Kenya's private sector growth accelerated to a 27-month high in April, driven by robust sales volumes and solid business activity, according to the Stanbic Bank Kenya Purchasing Managers' Index (PMI) released on Tuesday. The PMI rose to 52.0 in April, up from 51.7 in March, marking its highest level since January 2023. A reading above 50.0 indicates growth in business activity, while below 50.0 signals contraction. Strengthening customer demand led to the fastest rise in new orders since February 2022, prompting businesses to expand output and increase purchasing activities. "The Kenya PMIs for April reveal a private sector expanding robustly, and at the fastest pace in over two years," said Christopher Legilisho, Economist at Stanbic Bank. Job creation quickened as firms sought to ease workload pressures, with employment growth reaching its strongest level in nearly a year. However, hiring was primarily focused on temporary staff. Cost pressures picked up amid rising demand, but inflation remained modest compared to historical trends. Input costs rose to a three-month high, driven by supply shortfalls and increased taxation, yet the rate of inflation was below the long-term average. Despite the positive momentum, business expectations remained among the weakest in the survey's history, with only 5% of firms anticipating output growth over the next 12 months. Legilisho noted, "Overall, the April PMI implies a steady return to growth at the start of Q2:25. Further, inflationary pressures remained muted. Despite an improvement in future expectations, sentiment remains among the weakest in the survey history." The PMI survey highlighted robust gains in services, agriculture, and construction sectors, contrasting with lower sales in manufacturing and wholesale & retail.
Reuters
04-04-2025
- Business
- Reuters
Kenya private sector activity expands in March, PMI shows
NAIROBI, April 4 (Reuters) - Kenya's private sector activity expanded at its fastest pace in 10 months in March, helped by improved performance in most sectors apart from manufacturing, which experienced a contraction, a survey showed on Friday. The Stanbic Bank Kenya Purchasing Managers' Index (PMI) jumped to 51.7 in March - the highest reading since last May - from 50.6 in February. Readings above 50.0 signal growth in activity. "There were robust expansions in output and new orders across several sectors such as services, wholesale and retail. Only the manufacturing sector exhibited soft demand," said Christopher Legilisho, an economist at Stanbic Bank. The finance ministry projects the economy will grow 5.3% in 2025 and 2026, speeding up from an estimated 4.6% expansion last year.
Reuters
05-02-2025
- Business
- Reuters
Kenya private sector activity expands weakly in January, PMI shows
NAIROBI, Feb 5 (Reuters) - Kenya's private sector activity expanded for a fourth straight month in January but only modestly and at a slower pace than in December, a survey showed on Wednesday. The Stanbic Bank Kenya Purchasing Managers' Index (PMI) slipped to 50.5 in January from 50.6 a month earlier. Readings above 50.0 signal an expansion in activity. "The index was above the 50.0 neutral mark for the fourth successive month, thereby extending the current period of private sector growth," Stanbic Bank said in comments accompanying the survey. In January, the finance ministry estimated growth slowed to 4.6% in 2024 from 5.6 percent in 2023 but predicted it would pick up this year. Inflation (KECPI=ECI), opens new tab rose in January, reaching 3.3% year-on-year from 3.0% a month earlier, data from the statistics office showed. "Kenyan businesses reported an increase in purchase prices for imported commodities, albeit a slower one than the preceding month, still attributed to higher taxes," said Christopher Legilisho, an economist at Stanbic Bank. "Output prices increased but less briskly," he added. "We would therefore foresee a slight easing in inflationary pressure during January than was the case in December."
