Supply Chain Disruptions Hit 1,000 Manufacturers in Nairobi

Kenya’s private sector recorded renewed momentum in September 2025, marking its strongest performance in five months as rising consumer demand lifted business activity and new orders. According to the Stanbic Bank Kenya Purchasing Managers’ Index (PMI), the index climbed to 51.9 from 49.4 in August — surpassing the 50-point threshold that signals economic expansion. The improvement signals a potential turnaround for the country’s economy after a prolonged period of sluggish performance caused by political protests and high operational costs earlier in the year.
Analysts attributed the recovery to improved sales, targeted marketing campaigns, and renewed investment in product innovation. Economist Christopher Legilisho of Standard Bank noted that the rebound reflects growing consumer confidence despite persistent economic challenges. Business conditions expanded in September, implying the start of a recovery after disruptions that followed protests earlier this year, he said. The renewed optimism also spurred employment growth, with job creation rising at its fastest pace since May 2023 as companies ramped up staff capacity to meet increased orders. Improved labour availability and smoother supply chains helped reduce backlogs for the fourth consecutive month, while delivery times improved at the strongest rate in four years.
Despite the positive momentum, the recovery remains uneven across sectors. Construction activity declined even as manufacturing, retail, and services benefited from rising demand and marketing efforts. Businesses also reported easing cost pressures, with input price inflation moderating to its lowest level since May. However, some firms continued to cite concerns over higher taxes and fluctuating fuel prices, which pushed up selling prices slightly. Looking ahead, business confidence remains near a three-year high, with many firms planning to expand outlets, diversify product lines, and strengthen market presence. While challenges persist, the latest data suggests Kenya’s economy is gradually regaining its footing — offering cautious optimism for a more stable business environment in the coming months.