NAIROBI, Kenya, Nov 5 – Kenya’s private sector activity expanded for the second consecutive month in October, buoyed by strong sales and easing cost pressures, reaching its fastest pace in over two years.
The latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 52.5 in October, up from 51.9 in September, indicating a solid improvement in business conditions. A reading above 50 signifies growth, while one below it reflects contraction.
“The PMI registered in expansion territory for the second month running in October. At 52.5, up from 51.9 in September, the index signalled a solid improvement in overall operating conditions. Notably, this was the highest the index has been since February 2022,” the report stated.
The survey showed a continued rebound in the private sector following disruptions caused by protests in the second quarter of the year. Both output and new business increased for the second straight month, with growth rates accelerating.
“In terms of output, the latest expansion was the strongest since December 2021,” the report noted.
However, job creation remained subdued, despite stronger sales and output.
“After accelerating to a 28-month high in September, employment growth moderated to a mild pace at the start of the fourth quarter. Over 97 percent of firms reported no change in staffing levels during October. Some companies hired additional staff to support sales and new projects,” the report added.
Analysts attributed the improvement to stronger consumer demand, lower input cost inflation, and greater business stability compared to earlier months of the year.
