Kenya Private Sector Activity sinks in January

On Wednesday, a survey showed that in January, Kenya’s private sector activity dropped to a level last hit in April, with low household demand and poor weather slowing the output of many businesses.

The survey report said, “Overall activity levels contracted solidly at the start of the year, as firms reported that a lack of money at households led to much softer demand pressure.”

In January, the finance ministry said that economic growth probably slowed to 5.6% last year, compared with government’s initial estimate of about 6%, and from 6.3% in 2018.

The ministry is expecting a 6.1% growth this year, while the central bank forecasts economic output will expand 6.2% in 2020.

In November, Kenya removed a cap on commercial lending rates.

The previous cap, which had been put in place in 2016, was blamed for stifling private-sector credit growth, especially to small businesses.