Kenya’s private sector activity experienced a modest recovery in August following disruptions caused by anti-government protests in July.

The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 50.6 in August from 43.1 in July, indicating a slight expansion in business conditions.

“The PMI suggests a mild recovery as the impact of protests waned, enabling firms to resume normal operations,” said Stanbic Bank Kenya.

The July PMI reading of 43.1 reflected the effects of the protests, which disrupted business activities.

In June, President William Ruto discarded the government’s proposed finance bill, which contained tax hikes, leading to protests.

While output increased in services, wholesale and retail, and construction sectors, manufacturing and agriculture experienced declines.

The overall outlook remains pessimistic, with only 5% of surveyed firms anticipating growth in the next 12 months.

“Business expectations worsened in August, reflecting firms’ diminished optimism about future output,” stated Christopher Legilisho, an economist at Stanbic Bank.

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David Indeje serves as the community engagement editor at Khusoko, a digital platform covering East African business news. He manages editorial content, engages audiences, and amplifies diverse voices while consulting on digital strategy for brands in agriculture, governance, technology, and health. Indeje explores AI’s impact on journalism and works as a communications officer at KICTANet.

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