This archive report was first published on 4 September 2019.
As the Kenyan economy continues to grapple with cash flow issues, a new survey has revealed that businesses have failed to register gains from the recent government order on the clearance of pending bills.
Conducted in August by Stanbic Bank and IHS Markit, the survey found that firms have failed to honor client orders for the fourth consecutive month, with cash constraints remaining a major inhibitor to optimal output.
According to the survey's Purchasing Managers' Index (PMI), business conditions in the Kenyan private sector during the month of August came in at 52.9 percent, a decrease from the 54.1 percent rate in July.
Stanbic Bank Regional Economist Jibran Qureishi attributed the slow pace of reforms to the government's failure to fast-track clearances to pending bills and ease credit access.
