NAIROBI, Feb 4 – Kenya’s private sector continued to grow in January, although the pace of expansion slowed as activity weakened in key segments such as construction and wholesale and retail trade, according to the latest Purchasing Managers’ Index survey.
The Stanbic Bank Kenya PMI eased to 51.9 in January from 53.7 in December. A reading above 50 signals expansion, while levels below that threshold indicate contraction. The latest figure points to continued growth, but with reduced momentum compared with the end of last year.
Sector performance was uneven. Manufacturing firms recorded the most consistent gains in sales, helping to support overall activity. In contrast, businesses operating in construction as well as wholesale and retail trade reported outright declines in demand, weighing on the broader index.
The survey highlights growing divergence across the economy, with industrial activity showing more resilience than consumer-facing sectors, which remain sensitive to financing conditions and household spending trends.
Looking ahead, Kenya’s finance ministry projects economic growth of 5.3% in both 2025 and 2026, an improvement from an estimated 4.7% expansion in 2024.
The World Bank is slightly more cautious, forecasting growth of 4.9% this year, up from its earlier estimate of 4.5%, and expecting that pace to be maintained over the following two years.
While the PMI data suggests the economy entered the year on a relatively firm footing, the slowdown in January underscores lingering challenges in sustaining broad-based demand across all sectors.
