According to the Stanbic Bank Kenya Purchasing Managers’ Index (PMI), business in the Kenyan private sector expanded in October 2025 recording the highest reading since February 2022 and a 1.2 percent increase at 52.5 from September’s 51.9 exceeding April’s highest record in the year at 52.0. The rebound reflects a recovery in business conditions following the disruptions caused by the June 2025 protests.
October recorded the fastest paced growth of output across Kenya’s private sector in close to four years. The firms interviewed linked the growth in output to increased demand which encouraged companies to increase their purchasing activity and undertake promotion of new businesses. There was an overall improvement in consumer confidence in the private sector as evidenced in the second consecutive monthly increase in the PMI reading.
PMI showed Stability in Price Pressures
Businesses indicated that input costs rose marginally in October on the back of easing inflation which was slowest in 13 months. Both purchase prices and overall wage costs rose, albeit at a slower pace than in September 2025. Respondents who reported increases in costs attributed the same to rising taxes and higher prices of imports.
“Kenya’s private sector in October saw both output and new orders up sharply as conditions improved for consumers and firms benefited from softer inflation. Firms ramped up quantities purchased and increased inventory levels, expecting higher consumer demand. They also reported quicker deliveries reflecting increased efficiency and vendor competition. However, firms were less optimistic about future output conditions. Employment was stable in October for most firms as they maintained their workforce, while backlogs shrank as they cleared outstanding orders” – Christopher Legilisho, Economist, Standard Bank.
The wholesale and retail sector was the only one to have a upward trajectory in output. The optimism across Kenya’s private sector remained notably strong. 20% of firms surveyed expected output to increase by October 2026 and many businesses reported plans to diversify their operations as a strategy of sustaining growth and enhancing resilience against market fluctuations.
Also read: Kenya’s Private Sector Recovery as Stanbic PMI Hits 51.9
