Kenya private sector activity shrinks for first time since August 2025
Drop partly due to the war in the Middle East, with only the wholesale sectors experiencing expansion...
✨ Key Highlights
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.
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Kenya Private Sector Activity Shrinks for First Time Since August 2025 - April 2026
Kenya's private sector activity contracted in March for the first time since August 2025, with the Purchasing Managers' Index falling to 47.7 from 50.4 in February. The contraction snapped a six-month growth streak, driven by weak consumer demand and global disruptions exacerbated by the Middle East war. Separately, Nairobi Business Ventures, a diversified company with interests in aviation, heavy vehicle maintenance, retail, and manufacturing, issued a profit warning for the financial year ending March 2026, anticipating a significant decline in earnings due to challenging market conditions. These developments highlight the broader economic pressure on Kenya's private sector, with multiple businesses reporting difficulties stemming from weak market conditions.
