This archive report was first published on 7 June 2021.
Published on June 7, 2021, Kenya's private sector activity picked up momentum in May, marking a slight improvement after months of slow growth.
The Stanbic Bank Kenya Purchasing Managers Index (PMI), which measures the level of business activity in the private sector, increased to 52.5 in May from 41.5 in April, the highest reading in four months.
According to the Stanbic Bank survey, the level of output from Kenyan businesses improved in May, offsetting a severe decline in activity in April. Sectors such as Agriculture, Services, and Wholesale and Retail recorded significant progress in the rate of output growth.
Businesses in the Agriculture sector, Services sector, and wholesale and retail space indicated a sharp rise in demand for their products, while companies in the manufacturing and construction industry recorded a decline in demand.
As demand for goods and services increased in May, businesses expanded their workforce, with employment rising across most sectors, except for Agriculture and Wholesale and Retail, which remained broadly unchanged.
Approximately 9% of the businesses surveyed by Stanbic Bank posted an increase in prices mainly due to the high price of fuel in the country, while only 1% of companies indicated a decline in prices.
Businesses signalled optimism for the first time since January this year, with a rise in the Future Output Index, largely based on business expansion plans, including new branch openings, increased marketing, and opportunities to move into foreign markets.
