Kenya’s private sector posted its most robust performance in more than five years in November. Rising customer demand, stronger purchasing power, and easing inflation helped drive the growth.
The latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI®) shows the headline index rose to 55.0 from 52.5 in October. This is the highest reading since October 2020.
A PMI reading above 50 indicates an improvement in business conditions compared to the previous month. November’s surge reflects faster growth in output, new orders, and employment across the private sector. Respondents cited increased consumer spending, effective marketing, and higher demand for new products as key drivers.
All five monitored sectors recorded higher sales, signalling broad-based expansion. Output grew at the fastest pace in over five years. Companies increased purchases and built inventories in anticipation of continued demand. Vendor competition also improved delivery times, supporting production.
Although businesses reported higher material prices and taxes, inflation pressures remained relatively low. Selling prices rose only slightly—the slowest pace since August. Input costs increased at the smallest rate in 18 months, while wages remained unchanged, easing cost pressures for firms.
Employment also strengthened. November marked the tenth consecutive month of job creation and the second-fastest hiring rate since August 2023. Analysts attribute the trend to stronger market conditions and improved demand forecasts.
Christopher Legilisho, Economist at Standard Bank, said the positive PMI reflects the impact of recent government stimulus measures.
“The stimulus measures by the authorities over the last 12 months are now showing up in the real economy. Employment levels ticked up at one of the fastest rates this year due to improving conditions,” he said.
Despite the upbeat results, the outlook for the next 12 months is cautiously optimistic. Many firms expect continued expansion through marketing campaigns, diversification, and growth plans. However, confidence has eased slightly for the third consecutive month since August.
The Stanbic Bank Kenya PMI® is produced monthly by S&P Global from a survey of about 400 private sector companies across agriculture, retail, construction, services, and manufacturing.
What This Means for Kenya
The strong November PMI underscores Kenya private sector growth and signals resilience amid global volatility and domestic fiscal pressures. If momentum continues, analysts suggest the country could experience a more stable growth trajectory in 2026.
