Kenya’s private sector recorded a stable business operating condition in the month of April 2024 according to Stanbic Bank Kenya’s Purchasing Manager’s Index (PMI). The report attributes this to an improvement in sector activities, which improved from 49.7 recorded last month to 50.1. A PMI reading below 50 indicates a downtick and deterioration in business activities, while the figure above shows growth and improvement.
“The Stanbic Bank Kenya PMI signaled broadly stable operating conditions across the private sector in April, as order book volumes and output levels were little-changed since March,” said Christopher Legilisho, an economist at Standard Bank.
“The headline PMI registered fractionally above the 50.0 neutral mark at 50.1 in April, up from 49.7 in March. The latest reading was broadly in line with the trend for 2024 so far (50.2) and signaled a broad stabilization in operating conditions,” said Legilisho.
Last month, sector activities dropped slightly to 49.7 from 51.3 in February. The drop was linked to a decline in new orders and output.
Legilisho adds that the volume of new business received by private sector companies remained broadly stable last month, projecting a continued relative improvement compared with 2023, when new orders fell on ten occasions.
Total private sector output also showed a similar trend in the latest period, with the sub-index close to the neutral threshold and the third highest since January 2023.
Outstanding business increased slightly for the third time in four months as well, according to the PMI index.
The improvement was based on planned investment in marketing, capacity upgrades, new branches, recruitment, and growth in other African markets, with growth forecasts emerging strongest among service providers.
“There was a notable increase in jobs created, quantities purchased, and inventories held by firms during the month, reflecting increases in existing workloads and prospects of new business,” said Legilisho.
