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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Strong growth momentum led companies to expand their employment levels at the fastest rate since November 2019.
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Strengthening customer demand led to the fastest rise in new work in over three years, prompting a solid expansion in output and steep growth in purchasing.
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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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The strengthening of private sector conditions was largely due to a turnaround in inflationary pressures at Kenyan companies.
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The volume of new business received by Kenyan private sector companies remained broadly stable in April, as has been the case throughout 2024 on balance. This continued a relative improvement compared with 2023 when new orders fell ten times.
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Lower fuel prices helped to cool input cost inflation to a 26-month low, supporting the softest increase in output prices for one-and-a-half years.
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The rise in input costs translated into another marked uplift in firms' output charges, which was also slightly softer than October's survey record.
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