NAIROBI, July 3 – Kenya’s private sector returned to growth in June, ending a three-month period of contraction as business conditions stabilised, according to the latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI).
The headline PMI rose to 50.0 in June from 46.6 in May, reaching the threshold that separates expansion from contraction. The improvement signals that overall private sector activity stabilised after several months of weaker business conditions.
The recovery comes as inflationary pressures continued to ease. Data released by Kenya’s national statistics office showed that annual inflation slowed to 6.4% in June from 6.7% recorded in May, providing some relief for businesses and households facing higher living costs.
Lower inflation could help support consumer spending and business confidence, although price pressures remain above levels that policymakers would prefer as they seek to sustain economic growth.
The improvement in business activity also aligns with the government’s broader economic outlook. Kenya’s Finance Ministry projects the economy will expand by 5.0% in 2026, accelerating further to 5.2% in 2027, following estimated growth of 4.6% last year.
The latest PMI reading suggests Kenya’s private sector is beginning to regain momentum after a challenging period, although the pace of recovery will likely depend on sustained improvements in domestic demand, inflation and broader macroeconomic conditions.
