Kenya’s private secotor economy recorded an improvement in December, signaling a strong finish to the year.
According to Stanbic Bank Kenya Purchasing Managers Index (PMI), business activities were boosted by a robust increase in customer demand and mild cost pressure.
”Overall, the PMI data indicated a robust effort by companies to build capacity both to meet existing orders and in strong anticipation of future growth,” reads the monthly report on the state of private sector.
Additionally the PMI indicates that the strong growth momentum led companies to expand their employment levels at the fastest rate since November 2019.
On the flip side, input costs faced by corporates rose at a solid pace in December. This reaccelerating from an 18-month low in November.
“According to panel comments, cost’s typically rose due to greater tax burdens for some purchase, with companies also citing higher fuel and material prices,” the report notes.
Assessments by the firms surveyed revealed a positive outlook for 2026, an improvement from the previous month.
”Qualitative feedback signaled that businesses expect output to grow in 2026 because of investment and diversification plans, staffing growth, product rebrands and increased advertising,” it adds.