Kenya's private sector activity contracted in March for the first time since August 2025, a survey by Stanbic Bank revealed. The Purchasing Managers' Index (PMI) fell to 47.7 from 50.4 in February.

• The only sector experiencing expansion was wholesale and retail.
• Stanbic Bank cited constrained customer spending, reduced cash circulation, and the impact of the Middle East war as reasons for the slowdown.
• The contraction indicates businesses expect challenges due to geopolitical tensions, despite the Kenyan finance ministry's optimistic economic growth forecasts.

Kenya's private sector experienced a contraction in March, snapping a six-month growth streak due to weak consumer demand and global disruptions exacerbated by the Middle East war.

• The Stanbic Bank Kenya Purchasing Managers’ Index fell to 47.7, the first contraction since August 2025.
• The slowdown is attributed to weaker consumer spending and concerns over the Middle East conflict, impacting businesses across retail and services sectors.
• Despite rising costs and reduced demand, some businesses remain optimistic about future growth, with employment levels stable, particularly in agriculture.