Kenya’s private sector activity recorded a sharp decline in November after a steady rise in the six months prior, as businesses reported weak growth in sales and productivity. The slowdown is largely attributed to the resurgence of Covid19 cases. The Stanbic Bank Kenya Purchasing Managers Index (PMI) fell steeply to 51.3 in November from a peak of 59.1 in October.
Businesses in Kenya reported modest improvement in activities in November, the slowest growth reported in five months. According to the survey by Stanbic Bank, Kenyan companies reported a weak increase in productivity and sales due to economic challenges caused by the pandemic.
The reintroduction of some covid19 restrictions in Kenya and fresh lockdown measures across Europe hampered growth efforts for some businesses in Kenya.
The Stanbic Bank Kenya’s PMI notes that although the overall costs for businesses went up in November, average prices for goods and services declined in the same period as companies offered discounts to consumers in an attempt to increase sales.
Looking forward, businesses are concerned about the rising Covid19 infections and the new restrictions such as curfews introduced to curb the spread of the virus. Most companies have a negative outlook of the next 12 months. Only 25% of businesses predicted improved activity in the year ahead as per the survey by Stanbic Bank Kenya.
