Kenya private sector activity slows in August, PMI shows

File Photo: A general view shows a section of the skyline of the central business district of Nairobi, Kenya July 15, 2025. REUTERS

NAIROBI, Sept 3 (Reuters) – Kenya’s private sector activity contracted for the ​first time in three months ‌in August, as supply constraints and cost pressures led companies ​to reduce output and ​purchases, a survey showed on Thursday.

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• The ⁠Stanbic Bank Kenya Purchasing ​Managers’ Index fell to 49.7 ​from 51.3 in July, dropping below the 50.0 threshold that separates growth ​from contraction.
• High raw materials ​costs and tight cash flows limited ‌firms’ ⁠ability to translate stronger demand into output, Stanbic Bank economist Christopher Legilisho said.
• Inflation rose ​slightly to ​6.6% ⁠year-on-year in August from 6.5% in July, the ​statistics office said.
• Kenya’s finance ​ministry ⁠forecasts economic growth of 5.1% in 2027 and 5.2% ⁠in ​2028, up from ​an estimated 5.0% this year.

Reporting by George ​Obulutsa; Editing by Hugh Lawson