Kenyan businesses faced renewed pressure in August as supply shortages and rising costs dragged the PMI below the 50-point growth threshold.
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Output, new business and purchasing fell at softer rates, while employment continued to rise and inventories saw a renewed uptick.
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The headline PMI rose from 50.6 in February to 51.7 in March, indicating a stronger improvement in business conditions at the end of the first quarter of 2025. It was also the highest reading since May 2024 and above the
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Purchasing efforts accelerated, leading to the greatest upturn in inventories since August 2023. Input cost pressures remained mild, prompting a slower increase in average prices charged.
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September saw the headline PMI drop below the 50.0 no-change mark, falling to 49.7 from 50.6 in August, to indicate a slight deterioration in the health of the Kenyan private sector economy.
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Elevated inflationary pressures and rising fuel bills acted to dampen client sales, whilst also leading to the second-fastest rise in input costs in the survey's near-decade history.
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Job creation accelerated and purchasing activity picked up, whilst firms grew more confident about their output prospects.
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The headline PMI registered below the 50.0 neutral mark for the fifth month running in June.
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