Kenya Stanbic Bank PMI2014-2021 Data | 2022-2023 Forecast | Calendar | Historical

The Stanbic Bank Kenya PMI increased to 53.2 in January of 2021 from 51.4 in December, pointing to the highest growth rate in private sector activity in 3 months, driven by sharp increases in output and new business. Workforce numbers rose at a faster rate, while firms also expressed stronger optimism towards the next year of activity. Inflationary pressures intensified, however, as VAT returned to the level seen before the coronavirus pandemic.

The Stanbic Bank Kenya PMI rose marginally to 51.4 in December of 2020 from 51.3 in November, to signal another modest improvement in business conditions. Output rose at the slowest rate in six months while new order growth quickened slightly but far softer than October's record high. Employment rose for a third consecutive month amid a renewed increase in backlogs of work but the rate of job creation was marginal. Purchasing activity rose further in December, although stock levels increased at the slowest rate for six months. This was partly due to issues with global supply chains as a result of COVID-19 and input shortages. On the price front, purchase prices rose at the quickest rate since March, but average prices charged fell for the second month running, linked to discount offerings by some firms amid efforts to attract new clients. Lastly, business confidence slipped to a new record low, amid continued worries surrounding the impact of the COVID-19 pandemic on future activity.

The Stanbic Bank Kenya PMI fell sharply to 51.3 in November of 2020 from a record high of 59.1 in October, to signal a much softer and only modest improvement in overall business conditions. The rate of growth was also the least marked in five months. Key to the slowdown were weaker increases in business activity and sales, as firms commented on issues with money circulation and economic stress caused by a rise in local COVID-19 cases. Reintroduced curfew measures meanwhile led to a drop in client demand at some businesses, while lockdowns in Europe curtailed growth in foreign new orders. Subsequently, after a renewed rise during October, Kenyan companies kept job numbers stable in November, reflecting a drop in revenues and reduced pressure on capacity. Looking ahead, the outlook for business activity in 12 months' time fell to its lowest on record during November.

The Stanbic Bank PMI for Kenya increased to 59.1 in October of 2020 from 56.3 in September, pointing to the biggest expansion in private sector activity since the series began in January 2014, as the government relaxed coronavirus restrictions. Both output and new orders rose for the fourth successive month, with the rate of growth accelerating to a series high, due to stronger demand from both domestic and international markets. As a result, firms increased their staffing levels at the quickest pace in eleven months, ending a seven-month sequence of job cuts. Input buying also rose, with the rate of expansion the sharpest in the series so far. On the price front, input costs increased solidly, mainly due to higher raw material prices. Selling prices also increased as higher cost burdens were passed on to customers. Finally, future expectations improved slightly, due to plans to offer new products, expand operations and improve marketing efforts.