Nairobi, Kenya – The Kenyan private sector experienced a notable improvement in business conditions during November 2024, as indicated by the latest Stanbic Bank Purchasing Managers’ Index (PMI) report. The PMI rose to 50.9, signaling a second consecutive month of expansion and marking the highest reading in six months.

Key Findings from the Report:

Sales Growth: Sales growth accelerated to its fastest pace since May, driven by increased consumer spending and tourism activity. However, this positive trend was primarily confined to the wholesale, retail, and services sectors.
Output and Purchasing Activity: The uptick in sales translated into a moderate increase in output and a significant boost in purchasing activity, the strongest in over two years. Businesses sought to replenish inventories to meet rising demand.
Employment: Employment levels continued to expand, albeit at a slower pace than in October. Firms attributed this to increased workloads, marketing efforts, and higher order volumes.
Price Pressures: The surge in economic activity led to increased input and output costs. Higher taxes and increased spending on operations contributed to these price pressures.
Business Expectations: Despite the positive November performance, businesses remain cautious about the future. While 8% of firms anticipate growth over the next 12 months, overall business expectations softened slightly.

While the November PMI data suggests a positive trajectory for the Kenyan economy, challenges remain. Persistent inflationary pressures and global economic uncertainties could impact business confidence and growth prospects. Nevertheless, the recent uptick in economic activity offers hope for a stronger recovery in the coming months.