Sharp Daily
No Result
View All Result
Thursday, September 4, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Kenya’s Private Sector Shows Signs of Recovery Amid Political Stability and Rising Prices

David Musau by David Musau
September 7, 2023
in News
Reading Time: 2 mins read
Nairobi,Kenya

[Photo/Courtesy]

From the recently released Stanbic Bank Kenya Purchasing Managers Index (PMI), a measure of economic health by surveying a panel of about 400 private sector companies, the month of August recorded a slight improvement in Kenya’s private sector activity, marking the first positive change in seven months. This improvement was attributed to the relatively stable political environment. According to the report, Private companies in Kenya increased production and generated new orders, benefiting from the greater political stability brought about by formal talks between the Kenya Kwanza administration and the opposing Azimio political outfit.

Read more: Stanbic Survey Shows Record Rise in Purchase Costs in May 2023

During August, Kenya’s headline PMI rose to 50.6, up from July’s 45.5, indicating a marginal expansion in business conditions, the first since January. However, it’s worth noting that this expansion was only slight, as the index remained just above the 50.0 mark, signifying modest growth. Despite the improvement in business conditions, this subtle shift was, however, weighed down by rising price pressures. Raw material prices continued to increase at a historically strong pace, marking the sharpest rise since June 2022. After a significant decline in July, firms reported slight increases in production levels in August.

Companies surveyed in Kenya pointed out that the increased political stability had a positive impact on demand and overall activity, particularly in the services and manufacturing sectors, which resumed growth. Additionally, inflows of new work expanded in August, ending a six-month decline. Nevertheless, the rate of growth was minimal, as the positive effects of reduced political unrest and stronger demand were nearly offset by rising prices.

RELATEDPOSTS

No Content Available

Firms cited the high cost of raw materials, attributing it to the continuous weakening of the Kenyan Shilling against the US Dollar, increased taxation, and higher fuel prices at the pump. Consequently, selling prices increased at one of the fastest rates since the survey’s inception, reaching levels not seen in over a year.

Read more: Oil Firms Result to Offering Discounts to Boost Fuel Sales

To maintain stable margins, businesses often had to pass on higher purchase costs to their clients. The latest PMI survey data indicated an accelerated rate of job creation in August, as companies aimed to expand their workforce to support increased activity. Additionally, the purchase of raw materials grew for the first time in five months and at the highest level since January, resulting in renewed expansion in firms’ inventories. Lead times for inputs improved modestly for the fifth consecutive month, with vendors making efforts to deliver items more promptly to improve cash flow, according to panellists.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

Nairobi Securities Exchange (NSE) Introduces NSE 10 and NSE-BI

Next Post

Kenya’s Ambitious Plan to Unlock the Carbon Credit Market

David Musau

David Musau

Related Posts

News

Kick financial goals: Invest with CMMF this football season

August 22, 2025
commercial illustrator
News

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025

LATEST STORIES

The Importance of Including Pension Plans in Corporate Benefits Packages

August 29, 2025

The informal labor market and classical unemployment in the Kenyan context

August 28, 2025

Kenya’s Eurobond yields ease after S&P rating upgrade

August 28, 2025

Kenya’s strategic debt pivot: Smoothing, Strengthening, Sustaining

August 27, 2025

Bank on your paycheck: Invest smart with CMMF

August 26, 2025

Finding Balance: My Journey with Internet Self-Care

August 22, 2025

Why Young Kenyans Cannot Afford to Ignore Private Pensions

August 22, 2025

Strategies for Nairobi to emerge as Africa’s financial hub

August 22, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024