NAIROBI, Kenya – Kenya’s private sector experienced a mild downturn in May 2025, as rising prices dampened consumer demand, according to the latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI).
The headline index slipped from 52.0 in April to 49.6 in May, falling below the neutral 50.0 mark for the first time in eight months, signaling a slight deterioration in business conditions.
The PMI report attributes the contraction to a modest fall in new order inflows, which broke a seven-month streak of growth.
Business activity also shrank at its fastest rate in ten months, driven mainly by declines in the construction, retail, and services sectors. However, agriculture and manufacturing posted some gains.
“The Stanbic Kenya PMI signaled fragility in the private sector’s recovery,” said Christopher Legilisho, Economist at Standard Bank.
“There was a moderate contraction in output, and a decline in new orders after seven months of expansion.”
Supplier delivery times improved marginally, and inflationary pressures on output prices softened even as input costs rose at the fastest pace since January.
According to the report, business sentiment will remain subdued, with only 4% of surveyed firms expecting improved output in the next 12 months, the second-lowest level on record.
Many cited hopes tied to branch openings and enhanced marketing strategies.
