Kenya's Business Activity Shrinks for Second Month - Stanbic Pmi

By Wangechi Purity

Nairobi — Kenya's private sector activity declined for the second consecutive month in June, reflecting mounting pressure on businesses amid a challenging economic environment.

According to the latest Stanbic Bank Kenya Purchasing Managers' Index (PMI), the PMI fell to 48.6 in June from 49.6 in May, its sharpest drop in 11 months, signalling a modest but notable deterioration in business conditions.

A reading below the 50.0 threshold indicates a contraction, underscoring a sustained slowdown across key sectors as the first half of 2025 closed.

"Kenya's private sector faced additional challenges as the first half of 2025 ended, as the latest survey data highlighted contractions in both output and new orders for the second month running, " stated Christopher Legilisho, economist at Standard Bank.

The downturn was primarily attributed to a sharp contraction in both output and new orders, with businesses citing reduced consumer spending, ongoing economic difficulties, and operational disruptions linked to recent protests.

"The dip in activity was due to output and new orders contracting because of weaker consumer spending, challenging economic conditions, and social protests reappearing in June," he added.

Despite the slowdown, there were some signs of resilience. Firms increased their headcounts and reported the fastest improvement in supplier delivery times in nearly two years.

18 per cent of respondents expressed confidence in their ability to boost output over the next year, citing expectations of improved sales and market expansion.

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