Kenya’s private sector is closing the year on a high note, recording its sharpest rebound in more than five years in November. The latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI) shows that business activity surged, fueled by stronger consumer spending, easing price pressures, and a wave of new orders.
Surge in New Orders and Sales Growth
The upswing was anchored by the fastest rise in new business since 2020, as firms reported improved customer purchasing power and strong responses to new product launches and marketing campaigns. Sales growth was broad‑based, cutting across all five sectors tracked by the survey. Output Expansion and Employment Gains
Output expanded at the quickest pace in nearly five years, while companies stepped up procurement and hiring to meet rising workloads. Employment grew at its second‑fastest rate in over two years, signalling renewed confidence in the labour market.
A Meaningful Turnaround
Christopher Legilisho, an economist at Stanbic Bank, described the rebound as a “meaningful turnaround” in private‑sector momentum:
“The Kenya Purchasing Managers’ Index (PMI) showed steady and improving business conditions in November. The stimulus measures implemented over the past year are now filtering through to the real economy. Firms are responding directly to the stronger demand environment.”
Inflationary Pressures Ease, Costs Remain Mild
Inflationary pressures remained mild, with input costs rising at the slowest pace in 18 months. Selling prices increased only slightly, as firms passed on fewer costs to customers, keeping output charges competitive. Supplier delivery times also shortened, aided by stronger vendor competition and faster fulfilment of urgent orders.
Confidence Dips but Outlook Stays Positive
Despite the robust rebound, business confidence dipped for the third consecutive month, though it remained positive overall. Firms cited upcoming marketing campaigns, operational expansion, and product diversification as reasons for optimism heading into 2026.
What the PMI Means for Markets
The November PMI data suggests Kenya’s private sector is firmly back on a recovery path after months of uneven performance. For investors and businesses, the rebound points to:
- Stronger consumer demand is driving retail and services growth
- Improved employment trends supporting household incomes and spending power
- Mild inflationary pressures are easing margin constraints and boosting competitiveness
- Supply chain efficiency enhances productivity and inventory management
