Kenyan private businesses began to recover in September as the Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 51.9 from 49.4 in August and above the 50.0 neutral mark. This was the first time the PMI was above the 50.0 mark since the 52.0 print recorded in April 2025. The PMI signalled improved private sector conditions since April, following a period marked by political instability and rising price pressures.
Business activity increased, shown by a stabilising economy and increased sales, as a third of the firms surveyed reported output growth attributed to stronger demand, better economic conditions, and customer engagement strategies. Businesses recorded the strongest gains from marketing and new investment into products and services, though the construction sector lagged.
Employment rose at the fastest rate since May 2023, mainly driven by an increase in sales volumes. The agricultural and manufacturing sectors recorded the most job creations, while the construction sector registered a decline in jobs. As a result of increased staff uptake, firms were able to reduce the work backlog accumulated during the four months of contraction.
Supplier delivery times improved at the fastest rate in four years as a result of vendor competition, while input price inflation eased from July’s seven-month high. Output prices rose modestly due to increased taxes and higher demand.
PMI’s Future Outlook
Looking ahead, businesses remained optimistic, though slightly below August’s two-and-a-half-year high. Firms that were confident about the future anchored their optimism on expansion plans, the launch of new products, increased marketing activities, and investments.
“Encouragingly, business prospects for the upcoming year were still strong, albeit far off from historical trends – this implies that, while conditions for some firms have been improving, most still experience the business environment as challenging,” said Christopher Legilisho, an Economist at Standard Bank.
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