Kenya’s business activity declines in June – PMI

Kenya’s private sector witnessed a downturn in activity during June, according to the latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI).

The PMI dropped to 47.2 in June, down from 51.8 in May. A reading below 50 signifies contraction in business activity.

Stanbic Bank Kenya, in its accompanying comments, highlighted these challenges: “Tough economic conditions brought on by the cost-of-living crisis, as well as protests surrounding the country’s finance bill hurt sales volumes.”

The manufacturing sector, the only one monitored by the survey that exhibited growth in June, saw a rise in new orders.

Christopher Legilisho, an economist at Stanbic Bank, highlighted the impact of the tax bill and protests on the PMI data.

He noted a decline in private sector activity in June due to concerns about the proposed tax increase in the Finance Bill 2024 and the ongoing protests.

Attribution: Reuters