The Employment Index has risen to its highest point in over six years, indicating consistent job growth across all monitored sectors, according to Stanbic Bank.
According to the December Stanbic Bank Kenya Purchasing Managers’ Index (PMI) report, job creation was driven by increased new business, with firms in Kenya expanding their workforces at a historically strong pace.
Construction emerged as the leading sector in hiring, although all industries generally increased their staff numbers.
“Amid sharply increasing new business, firms in Kenya added to their workforces at a historically strong pace in December. In fact, when adjusted for seasonal variation, the Employment Index rose to its highest point in just over six years,” read part of the report.
“Job creation was widespread across sectors, but easily the most pronounced in construction.”
S&P Global compiled the Stanbic Bank Kenya PMI from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies.
Stanbic PMI Report Construction Sector Leads in Job Creation
However, the latest survey data signalled only a fractional increase in staff pay over the course of December.
Nearly all monitored companies reported no change in their wage costs during the month.
Where an increase was noted, firms linked this to higher living costs.
Firms’ assessments for the year ahead remained positive and improved slightly from last month.
At the same time, the qualitative feedback indicated that businesses expect output to grow in 2026 due to investment and diversification plans, staffing growth, product rebrands, and increased advertising.
Also Read: Why Kenya Has Been Ranked the Leading in Africa’s Private Sector, Toppling Nigeria
Firms Decreased Backlogs
According to the PMI report, an additional increase in staff capacity enabled Kenyan businesses to further reduce their outstanding business at the end of the year.
The level of work-in-hand fell modestly, with the rate of depletion quickening slightly from November.
Backlogs of work have now decreased for seven straight months, marking the most extended sequence of decline in the survey data in over 11 years.
Also Read: Why Kenyan Employers Are Quietly Hiring Across Private Sectors
Kenya Ends 2025 with Strong Private Sector Growth
Kenya’s private sector economy recorded a solid upturn in the final month of 2025.
The growth was driven by business activity, again boosted by robust customer demand and mild cost pressures.
Strong growth momentum led companies to expand their employment levels at the fastest rate since November 2019.
Kenyan firms also reported a sharp rise in purchasing activity in December, indicating greater efforts to build stocks, secure market positions, and capitalise on healthy supply chains.
The report stated that the expectation for the future output improved, despite a quicker uptick in the rate of input price inflation.
Business output increased sharply as 2025 ended, with firms often linking the expansion in activity to rising order book volumes.
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