Private Sector Activity Hit 3-month high After Ease of Restrictions

Kenya’s private sector performance has improved steadily in January due to soaring in output and new business registering the fastest growth since last October.

According to the monthly Purchasing Manager’s Index (PMI) by Stanbic Bank, the sector grew from  51.4 in December to 53.2 in January, recording the highest reading in three months.

This indicates a sustained improvement in the health of the private sector economy with the seventh consecutive month of growth since the Covid-19 outbreak.

According to currency strategist at Stanbic, Kuria Kamau, economic activity picked up in January on account of improved customer spending driven by cash-flows and the reopening of schools.

These factors he added, increased output and new orders which rose sharply in the new year which “led firms to be positive about improvement in business conditions.”

Nevertheless, firms have faced greater inflationary pressures affecting input prices on the back of tax relief reversals to corporation tax and value-added tax at the start of the year.