NAIROBI, (The Southern African Times) – Kenya’s private sector activity grew for the fourth month in a row and at a slightly faster pace in August, a survey found on Friday, thanks to increased demand and hiring.
The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 51.1 in August from 50.6 in the previous month. The 50.0 mark separates growth from contraction.
“The pace of the recovery in business conditions accelerated,” said Kuria Kamau, fixed income and currency strategist at Stanbic Bank.
Like other economies around the world, Kenya is still reeling from the impact of the coronavirus crisis, having been forced into several partial lockdowns this year to curb the spread of the virus.
Local demand increased across all the key sectors, the survey found, with the exception of manufacturing. Higher orders from the Middle East and Europe lifted export demand.
“Firms were, however, unable to raise their output to meet all the additional demand and consequently, the number of backlogs rose,” Kamau said.
Businesses increased hiring and purchases to meet that backlog, he said.