Kenya’s Private Sector on a Recovery Path in Medium Term -PMI

Kenya’s private sector activity in Kenya rose marginally in November attributed to political instability in the country according to the latest Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI).

The survey indicates that the manufacturing and services rose to 42.8 in November, from 34.4 in October, but remained well below the 50 mark.

“Business conditions deteriorated at a slower pace, thanks in large part to the conjecture by the private sector that the political impasse is now behind us,” said Jibran Qureishi, economist for East Africa at Stanbic Bank.

Qureishi is optimistic that,  “However, a sustained recovery is only likely from January onwards as firms once again start to build inventories and thereafter expand production. Indeed, lower political risk could provide the platform for Kenya’s private sector to stage a recovery over the near to medium term, more so as good weather conditions have improved growth prospects for the agriculture sector and reduced inflation expectations. ”