This archive report was first published on 4 June 2020.
On June 4, 2020, a survey by Markit Stanbic Bank Kenya revealed that Kenya's private sector activity had inched up in May, following a sharp decline in April due to COVID-19 restrictions.
The Markit Stanbic Bank Kenya Purchasing Managers' Index (PMI) stood at 36.7 in May, higher than April's 34.8 but still below the 50 mark that separates expansion from contraction.
Businesses reported lower activity due to weak sales, with demand levels impacted by travel restrictions in Nairobi and Mombasa, preventing some firms from acquiring inputs.
Tourism and horticulture, key sources of foreign exchange, have been severely affected by the pandemic, along with transport and manufacturing sectors.
As of May 27, Kenya had 2,216 confirmed COVID-19 cases and 74 deaths, with the government imposing a daily curfew, banning public gatherings, and restricting movement in and out of five regions, including the capital, Nairobi.
Many firms cut jobs in May, and exports fell due to travel curbs and lockdowns in overseas markets.
The government has revised its economic growth forecast for 2020 to three percent from six percent, or 2.5 percent if the crisis worsens.
Regional economist Jibran Qureishi noted that business conditions have contracted for five consecutive months, with the pandemic's impact expected to be felt in Q2.
