February private sector growth in Kenya is stable, but the future is bleak

The private sector in Kenya remained stable in February, growing at a comparable rate to the previous month, according to a poll released on Wednesday.

The Purchasing Managers’ Index (PMI) of Stanbic Bank Kenya increased from 50.5 in January to 50.6 in February. Increased activity is indicated by readings above 50.0.

“Discrepancies between sectors were evident, with manufacturing, construction, and agriculture driving output and new business growth. Retail, wholesale, and service companies saw decreases in the meanwhile,” Stanbic Bank stated in remarks that accompanied the poll.

Overall, nevertheless, the majority of the enterprises surveyed had a negative opinion of the state of business.

“Only 5% of surveyed firms expect output to rise over the next 12 months, with positivity only recorded in three of the five monitored categories: construction, wholesale & retail and services,” stated Stanbic Bank.

After an expected 4.6% growth last year, the finance ministry predicts the economy would rise 5.3% in 2025 and 2026.