Kenya’s private sector plummets further in September

Kenya private-sector activity escalated further in September for the fifth straight month this year to a new low of 40.9 percent according to the Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) survey.

The survey observed that the Kenyan private sector earnings dipped in the month, driven by sharp reductions in output and new orders in a period that saw firms cut their payroll numbers.

“For the fifth consecutive month, conditions in Kenya’s private sector continued to deteriorate which is reflective of the protracted political impasse in the country. Firms continue to bemoan the unavailability of credit which has been restrained as a consequence of the interest rate capping law,” said Jibran Qureishi, Stanbic regional economist.

”Destocking was recorded for the third time in the past four months. Furthermore, the rate of reduction was sharp overall. Respondents reported that input stocks fell in line with weaker demand conditions and a sharp drop in purchasing activity,” said Qureishi.