Kenya’s Private Sector Recovery Strengthens, October PMI at 59.1

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The recovery in Kenya’s private sector activity extended into its ‘greatest extent’ in October, an industry survey showed on Wednesday as lockdown restrictions, associated with the COVID-19 pandemic eased in the month.

The headline PMI rose from 56.3 in September to 59.1 in October, signaling the sharpest improvement in business conditions since the survey began in January 2014.

Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

Commenting on the October survey findings, Jibran Qureishi, Head of Africa Research at Stanbic Bank said, “Business confidence has been on the rise over the last couple of months, courtesy of easing domestic containment measures which has boosted demand, albeit from a low base from April/May.”

“That being said, with lockdowns being reimposed in some major international trading partners, new orders could ease over the coming months especially if external demand falters. Moreover, with Covid-19 cases also on the rise nationally, the risk of further containment measures pose downside risks to economic activity, prompting us to be cautious.”

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