Kenya’s Manufacturing Sector Contracts for Third Straight Month

Kenya’s Purchasing Managers’ Index (PMI) for manufacturing fell to 46.8 in April 2024, marking the third consecutive month below the 50-point threshold that separates growth from contraction. The Stanbic Bank Kenya PMI survey cited persistent inflation, high input costs, and weak domestic demand as key drags. Textiles, food processing, and metal products were hardest hit. While export orders showed slight improvement, local sales declined due to reduced household spending. Manufacturers also reported difficulty accessing affordable credit despite CBK’s easing signals. Kenya Association of Manufacturers (KAM) CEO Phyllis Wakiaga urged the government to fast-track the affordable housing agenda and reduce electricity tariffs to cut operational costs. The sector, which contributes 8.5% to GDP, has struggled since the 2022 global commodity shock. Without policy intervention, KAM warns of potential job losses in industrial zones like Athi River and Eldoret.