A recent report by S&P Global indicates that Kenya experienced the most significant private sector expansion among eight major African economies in November.
According to the survey, Kenya’s Purchasing Managers Index (PMI) reached 55 during this period, surpassing Nigeria. The substantial growth was attributed to several factors including increased sales volumes, a rise in new customer orders, competitive pricing, and the introduction of new products across various sectors.
Kenya was closely followed by its East African neighbor, Uganda, which registered a PMI of 53.8. Nigeria followed with a reading of 53.6, and Zambia recorded 51.1. Other economies also showed modest improvements, with Mozambique and Ghana recording 50.8 and 50.1 respectively, according to the survey findings.
The National Treasury responded to the survey by stating that the results are a reflection of growing investor confidence in the country’s stabilizing economy and the ongoing structural reforms that are driving its economic momentum. “New data from Finance in Africa shows that Kenya recorded the strongest private sector expansion among eight major African economies in November,” the Treasury commented. It further noted that “Kenya’s economy is moving with purpose, and the numbers are beginning to show it.”
This announcement follows closely after the latest Stanbic Bank Kenya Purchasing Managers Index, whose readings matched S&P Global’s figures. The 55 reading is reported to be the highest recorded since October 2020. Companies surveyed attributed this rise to intensified marketing efforts in recent months and an increase in customer referrals, which have stimulated overall business activity.
The uplift in business activity was among the sharpest recorded in the survey’s history. Survey panellists specifically cited stronger market demand as the catalyst for the steep increase in output. Despite this significant improvement, companies cautioned that persistent challenges remain. High material costs and increased taxation continue to put pressure on profit margins, even as overall cost pressures have shown some signs of easing.
