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.
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.
