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.

Nairobi Business Ventures (NBV), a diversified company with interests in aviation, heavy vehicle maintenance, retail, and manufacturing, has issued a profit warning for the financial year ending March 2026, anticipating a significant decline in earnings due to challenging market conditions.

• Profit is expected to drop by at least 25 percent compared to the year ended March 2025.
• The company's board cited a difficult operating environment impacting all business segments.
• This warning follows a 11.1 percent net profit decline in the year to March 2025, when revenue fell by 37.3 percent to Sh508 million.

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.