Nairobi’s Private Sector Sees Five-Month High as Demand Fuels Recovery

Nairobi, Kenya – Kenya’s private sector activity surged in September 2025, marking the first improvement in business conditions since April, driven by rising demand and stronger consumer spending. The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) climbed to 51.9 in September from 49.4 in August, surpassing the 50-point threshold that signals expansion. The report highlights a revival in output and new orders, with roughly a third of surveyed firms reporting growth compared with 23 percent noting declines. Analysts attributed the rebound to enhanced marketing strategies, investment in new products, and easing disruptions from earlier political protests.
The recovery extended to employment, which recorded its fastest growth in over two years as companies increased staff capacity to meet higher demand. Delivery times also improved at the strongest pace in four years, reflecting stabilized supply chains after protest-related interruptions. While purchasing activity remained cautious due to prior months’ sluggish sales, inventory levels rose, and input price inflation moderated to its weakest pace since May. Nevertheless, firms reported slightly higher selling prices due to elevated taxes, fuel, and food costs, despite overall deceleration in input cost pressures.
Despite sectoral disparities—construction output fell sharply—the overall outlook remains cautiously optimistic. Business confidence held near a three-year high, with companies planning to expand outlets, diversify product offerings, and boost marketing initiatives. Encouragingly, business prospects for the upcoming year remain strong, albeit below historical trends, said Christopher Legilisho, Economist at Standard Bank. Analysts noted that while the recovery is uneven, stronger consumer demand and targeted business strategies are sustaining momentum, suggesting that Kenya’s private sector is gradually regaining resilience amid ongoing economic challenges.