By Benadeta Mwaura - Reporter
Kenya, 3 December 2025 - According to a PMI (Purchasing Managers’ Index) survey released on Wednesday by Stanbic Bank Kenya, Kenya’s private sector recorded its fastest growth in five years.
The headline PMI rose to 55.0 in November from 52.5 in October, comfortably above the 50-point threshold that signals expansion.
Economists and firms surveyed credited the rebound to stronger market demand, with across-the-board improvements in output, new orders and business activity, making this the third consecutive month of growth.
The upswing follows earlier phases of gradual recovery. In April 2025, the PMI already showed signs of life after a slump, rising to 52.0, the highest reading in over two years at the time.
By October, the index had climbed to 52.5 as private-sector firms reported increased output thanks to improved demand, new product launches, and discounting strategies to attract consumers.
The November spike appears to reflect a broad-based revival: companies across multiple sectors, manufacturing, services, retail, wholesale, and construction, reported increased activity and more robust orders, indicating that the rebound is not limited to any single industry.
The dramatic growth signals improving business confidence and may point to stronger overall economic performance.
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Indeed, both the government and multilateral institutions have adjusted their growth forecasts.
The finance ministry expects Kenya’s GDP to grow by 5.3% in both 2025 and 2026, up from 4.7% in 2024.
Meanwhile, the World Bank has revised its 2025 growth estimate to 4.9%, citing improved private-sector activity among key drivers.
This momentum could translate into increased hiring, more investment, and higher consumer demand, all giving a much-needed boost to Kenya’s post-pandemic recovery.
Despite the rosy picture, some risks linger. Input costs, including fuel, taxes and imports, remain volatile. Some firms surveyed mentioned cost pressures even as demand picked up, which could squeeze profit margins.
Moreover, the rebound is still fragile: economic shocks, currency fluctuations or global macroeconomic uncertainty could reverse gains quickly. Analysts caution that structural problems, cracks in the financial system, public debt burden, or weak consumer purchasing power, may limit how far this surge can go.
