Kenya’s private sector continued its recovery in October, posting its strongest rate of expansion in nearly four years, according to new data from the Stanbic Bank Purchasing Managers’ Index (PMI) released on Wednesday.
The benchmark PMI rose to 52.5 in October, up from 51.9 in September, marking the second consecutive month of solid growth. A reading above 50 points to rising business activity, while anything below signals a slowdown.
Stanbic Bank said the improvement was broad-based, with output expanding across all five monitored sectors. Survey data also indicated better demand conditions, stronger order books, and increased confidence from both domestic firms and export-oriented businesses.
Economists say easing inflation, improved rainfall patterns that are supporting agricultural supply, and a gradual recovery in consumer spending have contributed to the stronger performance.
Kenya’s Treasury expects the momentum to continue. The finance ministry has projected GDP growth of 5.3% for both 2025 and 2026 — higher than the estimated 4.7% growth for 2024 — as policymakers focus on fiscal consolidation and attracting more private investment into key industries like manufacturing, agribusiness, energy and digital infrastructure.
However, analysts warn that currency volatility, high interest rates in global markets, and rising debt servicing costs remain potential risks that could slow momentum if not carefully managed.
Source:Africa publicity
