Kenya private sector activity falls to 47.7 in March
Kenya's PMI fell to 47.7 in March, marking the first contraction since August. Firms cited the Middle East war and tighter budgets for the decline in demand.
Private sector activity in Kenya contracted in March for the first time since August 2025, as the Stanbic Bank Purchasing Managers Index (PMI) dropped to 47.7 from 50.4 in February. This reading, which fell below the 50.0 threshold indicating growth, signals a significant shift in business conditions influenced by both domestic economic pressures and international conflict.
The slowdown was largely attributed to weakened demand, with businesses reporting that consumers are struggling with tighter household budgets and reduced cash circulation. Additionally, the ongoing war in the Middle East has introduced logistical constraints and contributed to higher costs for fuel and transportation.
