Kenya’s private sector activity rebounds in Feb

Kenya’s private sector activity rebounded in February, marking its first expansion since August, Reuters reported on Tuesday.

This resurgence was supported by easing inflation and improvements in agriculture, manufacturing, and services, as revealed by a survey released on Tuesday.

The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 51.3 in February from 49.8 in the previous month. Readings above 50.0 signify growth, while those below indicate contraction. This is the first instance since August that the figure has surpassed 50.

According to commentary accompanying the survey by Stanbic Bank, business activity expanded throughout the Kenyan private sector, driven by a further alleviation of inflationary pressures, which led to a rise in new order volumes. Inflation dropped to 6.3 per cent year-on-year in February from 6.9 per cent in the preceding month, according to data from the Kenya National Bureau of Statistics.

Christopher Legilisho, an economist at Stanbic Bank, noted a significant expansion, with output increasing in agriculture, manufacturing, and services. However, there was a decline in construction and wholesale & retail activity.