Kenya’s Private Sector Sees Recovery in August, PMI Data Reveals
Kenya’s private sector showed signs of recovery in August following disruptions from anti-government protests in July. The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 50.6 in August, up from 43.1 in July, indicating a rebound in business activity.
The PMI, which measures economic performance, climbed above the neutral 50.0 mark, suggesting expansion. Stanbic Bank Kenya attributed this improvement to the easing of protest impacts, which had previously disrupted business operations.
July’s PMI decline from 47.2 in June reflected the unrest triggered by President William Ruto’s rejection of a controversial finance bill, leading to tax hikes that fueled street protests.
In August, the survey showed increased output in services, wholesale & retail, and construction sectors, while manufacturing and agriculture experienced declines.
Despite the recovery, most respondents remain cautious about the future, with only 5% anticipating growth over the next year.
Economist Christopher Legilisho of Stanbic Bank noted, “Business expectations worsened in August, with firms expressing less optimism about future output.”
Source:CNBC AFRICA
