Kenyan business conditions improved last month with expansions in output and new orders, according to Stanbic Bank Kenya’s Purchasing Managers’ Index (PMI).  

The private sector recorded a PMI of 50.5 in January 2025, an improvement from the previous month.

Readings above 50.0 signal a growth in business conditions, while readings below 50.0 show deterioration.

Christopher Legilisho, Economist at Standard Bank, noted that Kenyan companies saw sustained upturns in their activity levels and new work intakes during January.

“The Kenyan Purchasing Managers Index (PMI) expanded for a fourth month running in January but at a slightly weaker pace than in the two preceding months, reflecting the ongoing resilience of the private sector at the start of this year,” stated Legilisho, Economist at Standard Bank.

Activity growth nevertheless fell to its softest pace as businesses highlighted challenging economic conditions and a slowdown in client demand.

Price pressures however remained solid, but moderated from December’s 11-month high.

Firms responded by increasing their selling charges further, whilst staffing numbers dropped for the first time since August last year.

“Positively, firms reported increases in output and new orders, implying higher sales, more marketing, client referrals, and lower inflationary pressures. Firms were able to increase stocks purchased and inventories held to cover higher sales,” added Legilisho.