Kenya’s private sector contracted for the seventh consecutive month in August, though at a slower pace than July, signaling tentative signs of stabilization. The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 49.4 from 46.8 in the previous month, edging closer to the 50-point threshold that separates growth from contraction, as highlighted by Reuters.
The PMI data revealed persistent challenges in agriculture, construction, and services, but these were partly offset by gains in manufacturing and wholesale & retail, which softened the overall downturn. Stanbic Bank economists noted that while business activity remains under pressure, the improvement suggests that confidence may be gradually returning, as reflected in the bank’s commentary on the survey.
Despite the improvement, inflationary pressures and high interest rates continue to weigh on private sector performance. Analysts caution that unless price stability and credit conditions improve, business momentum may remain subdued in the months ahead, industry observers pointed out in the coverage.
