Kenya's private sector experienced a mild slowdown in May, marking the end of seven months of growth due to inflationary pressures and reduced consumer demand.

• The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) fell to 49.6 in May from 52.0 in April, indicating contraction.
• Christopher Legilisho, an economist at Standard Bank, noted signs of fragility in the recovery.
• New orders declined for the first time in over six months, impacting key sectors like construction, retail, and services.

BK Group has announced a profit after tax of Sh2.29 billion for Q1 2025, marking a 5.4 percent increase from the previous year, attributed to improved net interest income and cost management.

• Net interest income rose 11.2 percent to Sh4.57 billion
• Uzziel Ndagijimana, CEO of BK Group, emphasizes resilience amidst macro challenges
• Basic earnings per share increased to Sh9.85, up from Sh8.90 in FY 2024

The Kenyan government is enhancing its support for the country's start-up ecosystem through renewed efforts in innovation and capacity building. This initiative aims to stimulate economic growth and commercialize innovation opportunities.

• Kenya National Innovation Agency (KeNIA) CEO Tonny Omwansa emphasized the importance of collaboration among various stakeholders in the ecosystem.
• The launch coincided with the Kenya Start-up Festival, aimed at celebrating ten years of innovation and facilitating new partnerships.
• KeNIA is considering a centralized portal for start-ups to submit ideas for potential government support, streamlining access to resources and mentorship.

Kenya's flower exports are projected to increase to 110 billion Kenyan shillings (approximately 851 million U.S. dollars) by 2025, driven by rising demand and expanding cultivation.

• 110 billion Kenyan shillings forecast for 2025, up from 835 million dollars in 2024
• Clement Tulezi, Chief Executive Officer of the Kenya Flower Council, emphasizes growing global demand
• Roses dominate the exports, accounting for over 60 percent of floriculture exports to key markets including the European Union and UAE

The National Treasury is contemplating a restructuring of the Affordable Housing Levy due to increasing complaints from salaried employees regarding its financial burden.

• The levy requires employees to contribute 1.5 percent of their gross salary, matched by an equal amount from employers, totaling 3 percent.
• John Mbadi, the Cabinet Secretary for the Treasury, acknowledged the need to address employees' concerns during a session with senators.
• The Affordable Housing Levy was implemented in 2023 under the Kenya Kwanza administration as part of President William Ruto's initiative to provide affordable housing.