Kenya's Private Sector Growth Hits 27-Month High in April, PMI Shows
The Stanbic Bank Purchasing Managers’ Index (PMI) for Kenya rose to 52.0 in April, its highest in 27 months and firmly above the 50.0 growth mark. This surge was driven by the fastest rise in new orders since early 2022, leading to expanded output and hiring, indicating a broad-based recovery.
Kenya's private sector demonstrated robust expansion in April, with the Stanbic Bank Purchasing Managers’ Index (PMI) climbing to 52.0. This reading marks the highest level in 27 months and significantly surpasses the 50.0 threshold that separates growth from contraction, indicating a healthy invigoration of business activity. The encouraging figures suggest a resilient economic recovery is gaining momentum across various sectors.
A key driver of this positive trend was a notable surge in new orders, which grew at their fastest rate since early 2022. This increased demand prompted firms to ramp up output and expand their hiring activities, although much of the new employment was reported to be on a temporary basis. While input costs experienced a slight uptick due to stronger demand for raw materials and other resources, overall inflation within the sector remained modest, preventing an undue burden on businesses. The April PMI data points towards a broad-based recovery, with positive performance noted in the services, agriculture, and construction sectors, even as overall business sentiment remains cautiously optimistic amidst global and local economic uncertainties.