Nairobi — Kenya's private sector recorded its strongest rebound in more than five years in November, driven by a sharp surge in new business, firmer consumer spending, and easing price pressures, according to the latest Stanbic Bank Kenya Purchasing Managers' Index (PMI).
The upswing was anchored by the fastest rise in new orders in over five years, as firms reported improved customer purchasing power and a strong response to new product launches and aggressive marketing campaigns.
Sales growth was broad-based, spanning all five sectors monitored by the survey.
Business activity expanded at a similarly rapid pace, with output rising at the sharpest rate since late 2020.
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Companies increased their procurement of inputs and accelerated hiring to meet rising workloads, pushing employment to its second-fastest growth level in over two years.
Meaningful turnaround
Christopher Legilisho, economist at Stanbic Bank, said the improvement points to a meaningful turnaround in private-sector momentum.
"The Kenya Purchasing Managers' Index (PMI) showed steady and improving business conditions in November," he said.
"The stimulus measures implemented over the past year are now filtering through to the real economy. Firms are responding directly to the stronger demand environment."
The report showed inflationary pressures remained mild, with input costs rising at the slowest pace in 18 months. Selling prices increased only slightly, as easing cost burdens allowed firms to maintain competitive output charges.
Supplier delivery times shortened further, aided by heightened competition among vendors and quicker fulfilment of urgent orders. This, combined with a surge in purchasing activity, drove a strong accumulation of input inventories.
Despite the robust November rebound, business confidence dipped for the third consecutive month, though it remained positive overall.
Firms cited planned marketing campaigns, operational expansion, and product diversification as reasons for optimism in the year ahead.
The latest PMI data suggest Kenya's private sector is firmly on a recovery path, ending the year with renewed momentum after months of uneven performance.
