NAIROBI, March 4 (Reuters) – Kenya’s private sector activity expanded at a slower pace in February, hurt by slowing performance in agriculture and manufacturing, but got a lift from construction, wholesale and retail and services, a survey showed on Wednesday.
The Stanbic Bank Kenya Purchasing Managers’ Index dropped to 50.4 in February from 51.9 in January, the survey showed. Readings above 50.0 indicate growth in business activity, while those below that signal contraction.
“While the outcome was still expansionary, some businesses were hampered by increased competition and a doubtful economy,” Stanbic Bank Economist Christopher Legilisho said.
“Although macroeconomic conditions have improved, the broader economy has not yet seen the benefits; sections of the private sector are still feeling the strain.”
Kenya’s finance ministry forecasts the economy grew by 5.0% in 2025 and will expand 5.3% this year from 4.7% in 2024.
Inflation slowed to 4.3% year-on-year in February from 4.4% in January, data from the country’s statistics agency showed.
(Reporting by George Obulutsa; Editing by Toby Chopra)
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