Kenya private sector expands at strongest level in a year – PMI

PUBLISHED: Wed, 05 Aug 2020 10:15:32 GMT
Share

NAIROBI (Reuters) – Activity in Kenya’s private sector rose at its fastest pace in a year last month on the back of a gradual easing of coronavirus lockdown measures, a survey showed on Wednesday.

The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) jumped to 54.2 in July, from 46.6 in the previous month, well above the 50.0 mark that separates growth from contraction. July’s level was the highest since June last year.

“The removal of county travel restrictions supported output and business sentiment in July,” said Jibran Qureishi, head of Africa Research at Stanbic Bank, referring to the opening up of the capital Nairobi and the port city of Mombasa.

He said the outlook was uncertain, however.

Firms continued to shed jobs in July, the survey found, but a slower pace than in the previous months.

The government cut its GDP growth forecast for this year to about 2.5% due to the pandemic, from an initial 6%.

Sign Up for Our Newsletter Daily Update
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.