In June 2024, Kenya witnessed a significant increase in employment rates across private companies, marking the sixth consecutive month of job creation, as per the Stanbic’s Purchasing Managers’ Index (PMI) report. This surge in employment was attributed to private firms aiming to expand their capacity to meet their clients’ needs. However, the overall private sector activity took a hit due to the impact of widespread anti-government protests.
The protests, along with the cost-of-living crisis and controversies surrounding the country’s finance bill, led to a decline in business confidence and new business intake, causing the PMI to drop from 51.8 in May to 47.2 in June. Readings above 50.0 indicate an improvement in business conditions, while readings below 50.0 signal a deterioration.
Despite the drop in private sector activity, the downturn was partially offset by a rise in new orders across the manufacturing sector, which was the only sector that recorded growth in June. This growth in new orders helped to soften the impact of the overall decline in the private sector.
In summary, while Kenya experienced a positive trend in employment rates, the private sector activity was negatively affected by the anti-government protests, leading to a decrease in business confidence and new business intake. However, the manufacturing sector managed to mitigate some of these effects with an increase in new orders.
