This archive report was first published on 5 August 2020.
Kenya's economy experienced a sharp rise in business activity in July, with the Purchasing Managers' Index (PMI) reaching 54.2 points, the highest in 13 months.
The removal of county travel restrictions in Nairobi and Mombasa led to a significant increase in output and new business, with firms receiving inputs much quicker and supplier delivery times improving.
According to Jibran Qureishi, Regional Economist E.A at Stanbic Bank, "Notably, the removal of county travel restrictions supported output and business sentiment in July, enabling firms to receive inputs much quicker, as supplier delivery times improved."
However, firms remain cautious due to the uncertain outlook, and future expansion plans are still not firmed up.
The lifting of COVID-19-related restrictions helped generate higher sales in July, with firms also posting steep increases in export sales to meet new orders, especially from the European Union.
Output levels were up at the start of the third quarter, the fastest since May 2018, representing a partial recovery in activity since the depths of the COVID-19 pandemic.
