Kenya: Conditions deteriorate markedly in February
The Stanbic Bank and S&P Global Purchasing Managers’ Index (PMI) dropped to 46.6 in February from January’s 52.0. As such, the index fell below the 50.0 neutral mark which separates an improvement from a deterioration in private-sector business conditions from the prior month. February’s result marked the first deterioration in conditions since August 2022
Behind February’s downturn was a sharp contraction in new orders as demand weakened. The fall in sales led companies to cut jobs. Consequently, output fell sharply for the first time since November. Meanwhile, costs increased at the fastest rate since 2014 amid increased taxes and exchange rate depreciation against the U.S. dollar making imports more costly.