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Business Insider
26-05-2025
- Business
- Business Insider
Top 5 private sectors that employed the most Kenyans in its last fiscal year
Kenya's job market offers a complicated mix of developments and persistent challenges. As the country's economy goes through a recovery phase, structural problems affect workforce stability and employment opportunities. Business Insider Africa presents the top 5 private sectors that employ the most Kenyans. This list is courtesy of the Economic Survey report by KNBS. Manufacturing in the private sector provided the most jobs for Kenyans. According to the most recent Economic Survey report by the Kenyan Bureau of Statistics (KNBS), there was a 2.4% growth in formal sector employment in 2024. During the year, the informal sector accounted for 83.6% of all employment in the country, with roughly 17.4 million people operating in this broad market. 'The informal sector created 703.7 thousand new jobs, which constituted 90.0 per cent of all new jobs created, with the exclusion of small-scale agriculture. Further, the total number of self-employed and unpaid family workers within the modern sector was estimated to have increased by 1.8 per cent to 175.5 thousand in 2024,' the report revealed. While the private sector accounted for just 16.4% of all employment, it boasted only 3.4 million people, underscoring the lack of job opportunities outside of make-shift industries. The prevalence of informal employment limits access to social protections and stable incomes. Youth Unemployment. High unemployment rates among youth contribute to social unrest and hinder economic progress. In April 2025, Kenya's private sector enjoyed its fastest growth in 27 months, according to the Stanbic Bank Kenya Purchasing Managers' Index (PMI), which increased to 52.0 from 51.7 in March. This expansion was fueled by strong client demand, which led to increased output, purchasing, and job creation, particularly in the services, agricultural, and construction sectors, as seen on Reuters. Despite the positive momentum, company forecasts were among the lowest in the survey's history, with only 5% of enterprises expecting an output increase over the next year. The PMI survey showed strong improvements in the services, agricultural, and construction sectors, but reduced sales in manufacturing and wholesale & retail. In Kenya, the private sector continues to be a key driver of employment and economic expansion. Even if recent developments show encouraging momentum, overcoming current obstacles and ensuring inclusive, sustainable development will require coordinated efforts. Kenya can fully utilize its private sector to promote economic growth and job creation by addressing structural problems and creating an environment that is conducive to private enterprise. With that said, here are the private sectors where most Kenyans were employed in 2024, according to the Economic Survey Report. Top 5 private sectors that employed the most Kenyans in its last fiscal year Rank Sector Number of employment 1. Manufacturing 347,294 2. Agriculture, forestry and fishing 308,865 3. Wholesale and retail trade; Motor vehicle repair shops 276,127 4. Education 242,536 5. Construction 223,383
Arabian Post
06-05-2025
- Business
- Arabian Post
Kenya's Private Sector Sees Strong Growth Surge in April
Kenya's private sector recorded its most substantial growth in over two years in April, bolstered by increased sales volumes and heightened business activity. The Stanbic Bank Kenya Purchasing Managers' Index revealed that the country's private sector growth surged to a 27-month peak, pointing to a more resilient economic outlook as businesses expanded and demand continued to rise. The PMI for April showed a notable uptick, reaching its highest point since January 2023, marking a significant shift from previous months that had seen varying degrees of stagnation or slow growth. The indicator, which reflects the health of the private sector, registered 54.7 in April, up from 53.9 in March, signalling a robust recovery following challenges posed by global economic headwinds and domestic uncertainties. A reading above 50 indicates growth, and this consistent upward trend suggests that the economic environment is improving. Key drivers of this momentum were solid sales volumes and the strengthening of business activity across multiple sectors. Both manufacturing and services industries witnessed accelerated output, with firms across various industries ramping up production to meet growing demand. This surge has been attributed to increased consumer spending, a stabilising inflationary environment, and more optimistic projections for the rest of the year. Manufacturing, which has often been a pivotal sector in Kenya's economic framework, reported particularly strong performance. The growth in manufacturing output was driven by both local demand and improving export conditions. Producers cited higher order volumes, particularly in food and beverage sectors, with many companies ramping up production in response to stronger domestic and regional demand. The rise in input costs was partly offset by the increased production levels, showcasing an ability to adapt despite external inflationary pressures. See also Rand Dips as Budget Uncertainty Weighs on Markets Services sectors also showed impressive gains. Both business services and trade reported increased activity, with the retail sector expanding rapidly due to a noticeable uptick in consumer confidence and spending. Many businesses attributed their success to efficient cost management, as well as a steady recovery in tourism, which continued to outperform expectations following the pandemic-induced downturn. Notably, hospitality and transport services have seen a consistent increase in demand, which contributed significantly to the services index's growth. Job creation was another positive aspect, with employment levels showing signs of recovery. Firms increased hiring in response to stronger demand for goods and services, which led to a reduction in job vacancies. However, there remain challenges, as firms continue to struggle with high staff turnover and the costs associated with hiring and training, which impact profitability in some cases. Despite this, overall, the labour market shows an optimistic outlook, aided by rising confidence in the economy. The PMI report also indicated an increase in purchasing activity, which signals a boost in future business prospects. Companies were seen investing in stockpiling inventories ahead of expected demand growth, especially in anticipation of events like major government infrastructure projects and upcoming public holidays that often drive higher consumption. While the economic recovery remains fragile in some respects, particularly due to external factors like fluctuating global commodity prices and ongoing geopolitical tensions, businesses across Kenya have managed to weather these challenges more effectively in recent months. However, inflationary pressures continue to linger, with input costs remaining elevated, particularly for fuel and raw materials. These costs, while moderating slightly, are expected to maintain a degree of upward pressure on businesses' operational budgets. See also Zambia Receives Flood Aid from Chinese Women's Federation Despite these challenges, Kenya's economic recovery has been steady. As businesses continue to capitalise on growth opportunities, such as expanding regional trade and enhancing supply chain efficiencies, the overall sentiment remains positive. Kenya's private sector outlook for the remainder of the year remains cautiously optimistic, as businesses anticipate sustained demand in both local and international markets. The government's fiscal policies and infrastructural investments are also expected to bolster this positive trajectory, offering a stable environment for private enterprises to thrive. Export growth, while significant, remains a key area of focus for long-term economic resilience. The Kenyan government's ongoing efforts to expand its export markets, particularly in the agricultural sector, are expected to further strengthen the economy. The sector's performance has been vital, with tea, coffee, and floriculture continuing to perform strongly in international markets. Strategic trade agreements and improved regional integration are expected to provide further opportunities for Kenyan businesses to tap into new markets and diversify their export products.
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
05-03-2025
- Business
- Reuters
Kenya's private sector growth holds steady in February, outlook dim
NAIROBI, March 5 (Reuters) - Kenya's private sector held steady in February, expanding at a similar pace to the previous month, a survey showed on Wednesday. The Stanbic Bank Kenya Purchasing Managers' Index (PMI) rose to 50.6 in February from 50.5 a month earlier. Readings above 50.0 signal growth in activity. "Sector divergences were apparent ... with output and new business growth driven by agriculture, manufacturing and construction. Meanwhile, wholesale & retail and services firms recorded declines," Stanbic Bank said in comments accompanying the survey. However, most companies surveyed took a dim view of business conditions overall. "Only 5% of surveyed firms expect output to rise over the next 12 months, with positivity only recorded in three of the five monitored categories: construction, wholesale & retail and services," Stanbic Bank said. The finance ministry forecasts the economy will grow 5.3% in 2025 and 2026, speeding up from an estimated 4.6% expansion last year.
