Kenya’s private sector activity decline in July – PMI

Kenya’s private sector business activity declined in July due to political unrest and protests. The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) dropped to 43.1 from 47.2 in June, marking the sharpest decline since April 2021.

Disruptions from demonstrations led to reduced output and new orders, with businesses facing delays in receiving supplies and an increase in input costs for the second consecutive month.

The PMI reflects a marked deterioration in business conditions, with notable declines across four of five sectors, particularly agriculture. Manufacturing was the only sector to see a rise in output. Despite a build-up of work backlogs, employment continued to grow, although at the slowest pace in seven months.

The unrest also affected purchasing decisions, leading to lower sales and inventory levels. Business confidence weakened to its second-lowest level on record, as firms remained cautious amid ongoing instability.

Attribution: Stanbic Bank Kenya PMI