Kenya’s private sector posts fastest growth in five years on soaring demand
Kenya’s private sector PMI rose to 55.0 in November, the highest since 2020, as stronger demand, softer cost pressures and faster deliveries lifted output, orders and employment across all monitored sectors.
Kenya’s private sector recorded its strongest expansion in more than five years in November, driven by a surge in customer demand and easing price pressures.
The latest Purchasing Managers’ Index (PMI), which measures private sector activity, shows that business output and new orders rose sharply, supported by successful product launches and intensified marketing campaigns across major industries.
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The headline PMI climbed to 55.0 in November, up from 52.5 in October.
This is the highest reading since October 2020, signalling a solid improvement in operating conditions.
Surveyed firms frequently reported that improved customer purchasing power helped boost sales volumes.
During the month, selling charges rose only marginally—at the slowest pace since August—while input costs increased at the lowest rate in 18 months.
New marketing strategies
Panellists also pointed to the success of new marketing strategies, increased customer referrals, and strong demand for innovative products.
Sales growth was broad-based, with all monitored sectors reporting increases compared to the previous month.
To meet rising demand and strengthen inventories, firms sharply increased their purchases of inputs.
Supplier delivery times also improved, with feedback suggesting that competition among vendors had pushed them to deliver faster as they sought to maintain strong business relationships.
Combined with the rise in purchasing, this contributed to a robust expansion of input inventories.
Although demand for inputs increased, firms reported that there was little impact on purchase prices.
Higher tax burdens
“Where an increase in costs was observed, comments mainly linked this to higher tax burdens,” reads the PMI report.
The labour market continued to strengthen on the back of increased demand.
Employment rose for the tenth straight month, with the latest growth being the second fastest since August 2023.
Looking ahead, Kenyan businesses maintained a generally positive outlook for private sector output over the next 12 months.
However, optimism eased for the third consecutive month since August’s recent high.
Firms expecting higher activity mainly cited planned marketing drives, business expansion strategies, and efforts to diversify their products and services.
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