The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) increased from 51.7 in March to 52.0 in April 2025, indicating that Kenya’s private sector growth accelerated. This was the highest level of growth in 27 months.

The strongest increase in new orders since February 2022 was a result of resilient customer demand, which drove the growth. In response, businesses increased their purchasing activity and output.

Additionally, the expansion of employment opportunities was facilitated by the employing of temporary personnel to satisfy the increasing demand. This suggests that employment in the private sector is on the rise.

Despite the fact that input costs increased as a result of supply shortages and increased taxes, inflation generally remained moderate and below long-term averages. Firms were able to maintain a lid on price increases.

The services, agriculture, and construction sectors were the primary drivers of growth, while manufacturing and wholesale & retail experienced diminished sales. This sectoral performance underscores the economy’s strengths and weaknesses.

Despite the present positive economic trajectory, only 5% of firms anticipate an increase in output over the next year, which is indicative of persistently low business confidence. The underlying concerns are suggested by this cautious outlook.

Christopher Legilisho, an economist at Stanbic Bank, underscored that the data indicates a consistent return to growth at the commencement of the second quarter. However, sentiment remains among the lowest in the survey’s history.