Kenya’s private sector records modest growth in Nov. ’24

Kenya’s private sector showed moderate growth in November, with the Purchasing Managers’ Index (PMI) rising to 50.9 from 50.4 in October, marking the highest reading in six months. Growth was driven by accelerated sales, stronger purchasing activity, and improved output, according to Stanbic Bank Kenya.

New orders increased at the sharpest pace since May, supported by improved consumer spending and higher travel activity, particularly in the services and wholesale & retail sectors. However, agriculture, manufacturing, and construction reported declines in demand. This divergence resulted in moderate overall growth in business activity and a solid rise in purchasing activity, which expanded at the fastest rate since September 2022.

Input costs rose due to higher taxes and increased expenditure, pushing output price inflation to a nine-month high. All five key sectors saw selling prices climb, reflecting both cost pressures and strengthened customer demand.

Employment levels remained stable, with hiring slowing compared to October despite increased workloads. Firms continued to bolster inventories, but stock accumulation eased compared to recent months.

Despite the positive trends, business optimism weakened, with only 8 per cent of firms expecting activity to improve over the next year. The cautious outlook stems from economic uncertainties, tempered by hopes for improved marketing and technological advancements.

Attribution: Stanbic Bank Kenya PMI®

Subediting: M. S. Salama