For the first time in seven months, Kenya’s private sector has experienced a decline. There is a recent report that indicates that business activity decreased in May.

This encompasses sectors such as construction, retail, and services, all of which experienced diminished performance.
The decrease in activity is indicative of the increased number of obstacles that organizations are encountering.

Businesses are experiencing challenges in expanding due to the combination of low customer demand, delays in payments, and increasing costs. Numerous organizations are decreasing their investments in new projects.

According to experts, this may be a temporary decline; however, it indicates that Kenya’s economy continues to have vulnerabilities.

The government may need to intervene by providing support or implementing new policies to assist businesses in regaining momentum.

Although the economy is experiencing a decline, certain sectors, such as agriculture and manufacturing, are maintaining their stability. If they maintain their strength, these sectors could potentially mitigate the decline.

Business proprietors are anticipating improved circumstances in the latter portion of the year with desires for improved access to loans, reduced red tape, and increased government assistance to facilitate their recovery and expansion.