NAIROBI, May 6 – Kenya’s private sector activity contracted for a second consecutive month in April, as rising fuel prices and weaker consumer demand continued to weigh on business conditions.
The Stanbic Bank Kenya Purchasing Managers’ Index rose to 49.4 in April from 47.7 in March, indicating a slower pace of contraction but remaining below the 50 threshold that separates growth from decline.
The data point to ongoing pressure across the economy, with higher fuel costs feeding into broader operating expenses and dampening demand. “Businesses in Kenya suffered a further decline in operating conditions in April, as increasing fuel prices lifted cost burdens and reduced customer demand,” the bank said.
Fuel prices were raised by as much as 24.2% in mid-April, reflecting global supply disruptions linked to the Middle East conflict. The increase has had a broad impact across sectors, particularly those reliant on transport and logistics.
According to Christopher Legilisho, rising transport costs and supply chain concerns, especially for imports from the Middle East and Asia, have weighed on output and new orders.
The survey showed the steepest declines in wholesale and retail trade, agriculture and services, highlighting the widespread nature of the slowdown.
Inflation accelerated to 5.6% year-on-year in April, up from 4.4% in March, adding further strain on household purchasing power and business margins.
Despite the near-term weakness, official projections still point to moderate growth. Kenya’s statistics office expects the economy to expand by 4.9% in 2026, although it has warned that the region remains vulnerable to external shocks tied to global geopolitical tensions.
The latest PMI reading underscores the fragile balance facing Kenya’s economy, as policymakers navigate rising inflationary pressures while trying to sustain growth momentum.
