In August, Kenya’s business activities improved compared to July. This positive change came after political tensions eased following earlier demonstrations.
According to the latest Stanbic Bank Purchasing Managers Index (PMI) survey, the PMI index increased from 45.5 to 50.6. This is the first time it’s gone above 50 in months. This improvement was seen after truce between the government and the opposition, which brought more political stability.
“In August, the PMI reached 50.6, up from 45.5 in July, showing better business conditions since January,” the survey mentioned. However, this growth was only slightly above 50, indicating it was modest. It was a positive sign after a challenging July.
According to the survey, output levels increased slightly in August. Businesses mentioned that improved political stability boosted demand, especially in services and Manufacturing.
But, it’s important to note that rising inflation affected the positive trend. The report pointed out that “almost 38% of companies experienced higher input costs, one of the steepest increases seen.”