According to Stanbic PMI, political instability in Kenya contributed to the seventh consecutive deterioration in business conditions in November.
Although the seasonally adjusted PMI rose from a survey-record low of 34.4 in October to 42.8 in November, the latest reading signalled the Kenyan private sector economy was entrenched in contraction territory. The headline PMI registered below the neutral 50.0 threshold for a seventh month in succession.
Commenting on November survey findings, Jibran Qureishi, Regional Economist E.A at Stanbic Bank said: “Business conditions deteriorated at a slower pace, thanks in large part to the conjecture by the private sector that the political impasse is now behind us. However, a sustained recovery is only likely from January onwards as firms once again start to build inventories and thereafter expand production. Indeed, lower political risk could provide the platform for Kenya’s private sector to stage a recovery over the near to medium term, more so as good weather conditions have improved growth prospects for the agriculture sector and reduced inflation expectations. ”