The Kenyan private sector's decline softened in August 2025, as the Stanbic Bank Kenya Purchasing Managers’ Index (PMI) improved despite persistent weak consumer spending. Businesses, particularly in manufacturing, demonstrated optimism by increasing employment for the seventh consecutive month.

• The PMI rose to 49.4 in August from 46.8 in July, indicating a slower contraction.
• Economist Christopher Legilisho of Standard Bank noted improved business conditions but highlighted weak disposable incomes.
• Employment saw its fastest growth in 15 months, while input costs rose due to wage pressures and higher taxes, yet inflation held steady at 4.5% in August.