The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) for manufacturing and services declined to 51.2 in February 2019, the lowest level in 15 months, according to a survey. The reading fell from 53.2 in January, with any figure above 50 indicating expansion. This marked the weakest PMI result since November 2017, a period coinciding with Kenya’s political turmoil following the annulment of the August 2017 presidential election.
The survey highlighted slowing new order growth and reduced sales for over 25% of firms, attributed to weaker consumer demand. Output expansion also decelerated, with the pace of growth the slowest in 15 months. Economic activity had remained subdued until March 2018, when President Uhuru Kenyatta and opposition leader Raila Odinga reached a reconciliation.
The report noted that softened demand led to slower output growth across Kenyan firms in February. The PMI’s decline reflects broader challenges in sustaining private sector momentum amid shifting economic conditions.
