The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) reading for November 2025 was 55.0, the highest level in just over five years, and up from 52.5 recorded in October 2025 on account of business growth, increased output, and a general invigoration of operations in the private sector.
Drivers of Growth and Demand
Sales volumes generally rose in November relative to October. Some of the contributing factors behind this as highlighted by surveyed managers included: improved customer purchasing power which was partly attributed to a moderation in inflationary pressures. Firms cited that new marketing initiatives increased customer referrals, and rising demand for innovative products. There were sales growth reported across all five monitored sectors in November.
Due to the rising demand and improvement of economic conditions, the labor market showed signs of strengthening. Employment also increased for the tenth consecutive month, and the rate of job creation was the second fastest since August 2023. All five monitored sectors which include agriculture, mining, manufacturing, construction, wholesale and retail services saw an increase in employment during November.
Firms increased their purchases of inputs greatly in November to meet client demand and boost inventories, operational efficiencies also improved, and supplier delivery times shortened during November. Feedback indicated that increased competition among vendors was driving faster deliveries as they sought to strengthen business relationships.
Softening Prices Buoy November PMI
Kenyan businesses reported softer increases in input prices, purchase prices, and output prices. Input prices saw only a slight increase, with the pace of inflation slowing to the weakest seen in an 18-month sequence. Output prices rose only slightly, decelerating to their weakest rate of inflation in three months. This cautious approach to price increases was enabled by easing cost pressures.
Wage pressures softened, with staff costs rising fractionally, marking the slowest uptick since the beginning of the year. Firms still noted rising material prices and higher taxation as impacting their margins. Increases in costs that were observed were mainly linked to higher tax burdens.
“Inflation expectations are anchored, as echoed by the survey. Kenyan businesses reported softer increases in input prices, purchase prices and output prices, while wages costs were unchanged. Although, firms still note
rising material prices and higher taxation as impacting their margins. However, the survey notes that confidence in the business outlook over the next 12 months is still subdued.” – Christopher Legilisho, Economist at Standard Bank
The Purchasing Managers’ Index (PMI) serves as the headline figure derived from the monthly survey of private sector firms, providing a critical indicator of economic trends and the general business environment. Readings above 50.0 signal an improvement in business conditions compared to the previous month, while readings below 50.0 indicate a deterioration, while readings of exactly 50.0 indicate a neutral position.
Also read: PMI Rises to 52.5 as Kenya’s Private Sector Gains Momentum in October 2025
