Kenya: Private sector in Kenya tiptoes above no-change threshold in April
The Stanbic Bank Kenya PMI improved to 50.1 in April from 49.7 in March. As a result, the index moved above the 50.0 no-change threshold and signaled an improvement in private sector operating conditions compared to the previous month.
April’s reading came as output and new business broadly stabilized, continuing the trend of relative improvement compared to the frequent declines seen throughout 2023. As a result, firms raised staffing levels at a slightly faster pace and increased input purchasing and inventories.
Regarding prices, April saw a notable shift: For the first time in nearly four years, average input prices fell, driven by the sharpest decrease in purchasing costs since records began in 2014; this came despite the steepest rise in wages in eight months. Lastly, companies expressed the strongest confidence since March 2023, underpinned by planned investments in marketing, capacity upgrades, new branches, recruitment and entry into new African markets.