Kenya’s Private Sector Activity in December

NAIROBI (Reuters) – Kenya’s private sector activity expanded slightly in December, showing a small slowdown from the previous month, but it remained supported by increased customer sales, according to a survey released on Monday.

The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) decreased to 50.6 in December from 50.9 the previous month. Readings above 50.0 indicate an expansion in activity.

“Positively, this is the first quarter of expansion in output since the fourth quarter of 2021, suggesting that the private sector is showing signs of a turnaround with new orders and employment also in expansionary territory,” said Christopher Legilisho, an economist at Stanbic Bank.

The economy is estimated to have grown by 5.2% in 2024 and is projected to expand by 5.4% in 2025, according to the finance ministry. The economy grew by 5.6% in 2023.