Kenya’s Economy Picks Up Steam: What The PMI Surge Means For You

Kenya’s private sector is roaring back to life, with new data showing the country’s business environment has hit its strongest stride in over two years. The latest Purchasing Managers’ Index (PMI) from Stanbic Bank Kenya climbed to 52.0 in April 2025, up from 51.7 in March. This marks a 27-month high and the most optimistic reading since early 2023. But beyond the technical jargon, what does this mean for your wallet, your job prospects, and your plans?

First, let’s break down the PMI. Think of it as a business thermometer. A score above 50 indicates that companies are expanding—more goods are being produced, more services rendered, and more people employed. A score below 50 means contraction, with businesses shrinking. April’s score of 52.0 is not just a number; it’s a signal that Kenya’s economic heartbeat is growing stronger.

What’s powering this renewed momentum? Consumer demand. Kenyans are spending again, especially in sectors like services, agriculture, construction, and retail. Businesses are reporting the fastest rise in new orders since February 2022. This means that people are buying more goods and services, prompting companies to increase output and stock up on supplies.

Read Also: Stanbic March 2025 PMI Rises To 51.7 From 50.6 Last Month, The Highest In 10 Months

Employment is also showing signs of life. While the rise in job creation was described as “modest,” it was the strongest seen in nearly a year. Firms are cautiously hiring, mostly on temporary terms, to manage increasing workloads. This may not yet signal a job boom, but it does offer hope to the many Kenyans looking for opportunities or side hustles in a sluggish job market.

One key driver of the optimism is marketing. Companies are pushing hard to attract customers, and it’s working. In response, businesses are purchasing more inputs, leading to increased demand for transport, packaging, and warehousing services—rippling benefits across the economy. However, not all is rosy.

Inflation—especially on inputs—remains a concern. Costs are rising due to global supply issues and increased local taxation. Yet, the report notes that while prices did rise, they remained relatively modest compared to Kenya’s historical standards. This means while you may feel some pinch at the till or on monthly expenses, the situation hasn’t spiraled out of control—yet.

Still, the average Kenyan should be watching this closely. If input prices continue to rise without corresponding wage increases or consumer protection measures, the burden will shift to households. Budgeting, saving, and investing wisely should remain a priority, especially as the cost of living remains volatile.

For entrepreneurs and SMEs, this is a window of opportunity. With demand growing and customers more willing to spend, there’s a chance to scale operations, introduce new products, or tap into underserved markets. Inventory growth was the fastest since October last year, suggesting that firms are gearing up for a better second quarter. If you run a business, this might be the time to stock up, market aggressively, or hire short-term help to ride the wave of growth.

Interestingly, business confidence ticked up slightly in April after plunging to record lows in March. But optimism remains fragile, with only 5% of firms expecting output to rise in the coming year. This cautious mood reflects the uncertainty that still hangs over the economy—from politics to weather shocks and international market trends.

So what’s the big picture? Kenya’s economy is not yet booming, but it’s recovering steadily. April’s PMI shows solid growth, stable employment trends, and manageable inflation—all positive signals. For citizens, this means it’s a good time to position themselves for growth: upskilling for better jobs, starting small businesses, or investing in sectors showing signs of life like agriculture, services, and construction.

As always, the key lies in staying informed, agile, and prepared. The economy is sending signals—it’s up to each Kenyan to read them wisely and act strategically.

Read Also: PMI Rises To 27-Month High In April On Increased Customer Demand