A general view shows a section of the skyline of the central business district of Nairobi, Kenya July 15, 2025. REUTERS
NAIROBI, May 6 (Reuters) – Kenya’s private sector activity contracted for the second month in a row in April, although at a slower pace than in March, undermined by higher fuel prices that hit most sectors and reduced consumer demand, a survey showed on Wednesday.
The Stanbic Bank Kenya Purchasing Managers’ Index rose to 49.4 in April from 47.7 a month earlier. Readings above 50.0 indicate growth in business activity, while those below that signal contraction. The March figure was the first time since August 2025 that the index went below 50.
“Businesses in Kenya suffered a further decline in operating conditions in April, as increasing fuel prices lifted average cost burdens and dampened customer demand,” Stanbic Bank said in comments accompanying the survey.
In mid-April, Kenya raised its retail fuel prices by as much as 24.2% amid a spike in crude prices and a squeeze in petroleum supplies caused by the Middle East conflict.
Inflation rose to 5.6% year-on-year in April from 4.4% a month earlier, data from the statistics office showed.
The survey said drops in business activity were most pronounced in wholesale and retail, agriculture and service sector companies.
“Concerns about rising costs, tied to higher transport costs, and the ability to secure supplies, especially from the Middle East and Asia, weighed on output and new orders,” Christopher Legilisho, economist at Stanbic Bank, said.
Kenya’s statistics office said in late April it forecasts the economy will expand 4.9% in 2026, but it said Sub-Saharan Africa remained highly vulnerable to shocks caused by the U.S.-Israeli war with Iran.
The economy grew 4.6% last year, little changed from 2024’s 4.7% growth and below a finance ministry estimate of 5.0% for 2025.
Reporting by George Obulutsa; Editing by Joe Bavier
