The Kenyan private sector saw employment numbers rise in February 2026, continuing a trend that began in February 2025, according to the latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI).
The report notes that the pace of job growth accelerated compared to January and surpassed the period’s average, largely driven by higher workloads and the launch of new projects.
“Job numbers rose at Kenyan businesses, continuing the run of job creation that began in February 2025. Furthermore, the pace of growth accelerated from January and was stronger than the average seen in the aforementioned period,” read part of the report.
The increase in jobs came as companies managed heavier workloads. Backlogs of unfinished work stayed mostly the same in February, ending a decline that lasted eight months.
Many firms reported that it was still challenging to complete all the new orders they received.
The manufacturing, wholesale and retail, and services sectors saw more unfinished work, while construction and agriculture had less.
Kenya’s Private Sector Growth Slows in February 2026
The Kenyan economy showed signs of slowing in February, with the Stanbic Bank Kenya Purchasing Managers’ Index (PMI) falling closer to its neutral 50.0 threshold.
Further, the report notes that the sales volumes across the private sector rose only marginally, prompting firms to slow output growth.
Expansion in purchasing activity also eased, leading to softer increases in input costs and prices charged.
The headline PMI figure, which measures business conditions month to month, dropped for the third consecutive month, from 51.9 in January to 50.4 in February, indicating only a slight improvement in private-sector health.
Stanbic noted that this represented the slowest upturn in a six-month growth streak.
Also Read: Stanbic PMI Report Reveals Which Sector Is Hiring More Kenyans
Stanbic Report on Sales
Output volumes were nearly stalled in February, with about 33% of surveyed companies reporting higher activity, while 32% saw declines.
The Stanbic PMI report indicated slower growth in new orders, and macroeconomic pressures weighed on businesses.
Sales growth was uneven across sectors; construction, wholesale and retail, and services saw modest gains, supported by new products, marketing campaigns, and promotions.
In contrast, agriculture and manufacturing faced declines, with firms citing weak consumer purchasing power, competition, and challenging economic conditions.
Also Read: Kenya’s Private Sector Records First Fall in 7 Months- PMI Report
The slowdown in new business also restrained purchasing activity, while inventory levels increased at the slowest pace in seven months.
Delivery times improved, but at a slower rate than in January due to busy suppliers, road traffic, and port congestion.
“Total new business received by Kenyan companies increased in February, but the upturn was only slight and the softest in the current six-month period of growth. Respondents who saw order books improve commented on new products and services, marketing efforts, and discounted prices,” read part of the report.
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