Business in Kenya got tougher in May. The Stanbic Bank Kenya PMI, a monthly health check on the private sector fell to 46.6, down from 49.4 in April. Any reading below 50 means conditions are getting worse, so this was the sharpest decline since July 2024.
Why it happened
Two forces dragged it down: weaker demand and rising costs, a trend also reflected in the latest KNBS data, which showed inflation accelerating to 6.7% in May.
The Silver Lining
There were a couple of positives. Manufacturing was the only sector to record growth in output. And despite the challenging environment, business confidence improved to its highest level since February 2023, supported by plans to launch new products, increase marketing efforts, and expand online sales.
The Takeaway
Kenyan businesses are facing significant pressure today, but many remain confident that conditions will improve over the coming months.
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