Kenya has taken the lead in Africa’s private sector performance, overtaking Nigeria, one of the continent’s largest economies.
According to new data from Finance in Africa, the latest Purchasing Managers’ Index (PMI) surveys published by S&P Global show that the East African economy topped the continental rankings with a headline PMI of 55.
Kenya recorded the most significant private-sector expansion among eight major African economies in November.
A PMI score above 50 indicates improving business conditions in the private sector, while anything below that level signals a decline. The index tracks changes in output, new orders, employment, supplier delivery times, and inventory levels across key industries.
Kenya Ranked as the Leading Country with the Best Performance in the Private Sector in Africa
Kenya’s Purchasing Managers’ Index (PMI) rose to 55.0 in November, up from 52.5 in October. This is the fastest growth in five years and shows a strong recovery from the disruptions caused by anti-government protests in June and July this year.
The improvement was driven by firms reporting a surge in new orders, supported by stronger purchasing power, easing inflation, and successful product launches that boosted demand.
Businesses responded by buying more supplies and hiring many workers at one of the fastest rates seen since 2023.
“Inflation expectations remain stable,” said Christopher Legilisho of Standard Bank.
He pointed out that there are smaller increases in the costs of inputs, purchases, and outputs. However, rising material costs and taxes continue to put pressure on profit margins.
Also Read: Why Kenyan Employers Are Quietly Hiring Across Private Sectors
Improved supplier delivery times helped firms rebuild inventories across all monitored sectors. Business confidence remained positive, although it moderated for the third consecutive month.
The government, through the National Treasury, responded to the survey by noting that the steady momentum reflects:
• The strongest private sector growth in the region
• Rising business confidence across sectors
• Improved economic stability supporting expansion
• Ongoing reforms driving real economic activity
“Kenya’s economy is moving with purpose, and the numbers are beginning to show it,” the Treasury stated.
Elsewhere, Uganda ranked second in the region at 53.8, ahead of Nigeria at 53.6 and Zambia at 51.1. Mozambique and Ghana recorded readings of 50.8 and 50.1, respectively.
Egypt’s private sector returned to growth for the first time in nine months, also posting a PMI of 51.1.
South Africa was the only economy that remained in contraction.
About the Purchasing Managers’ Index (PMI)
The Purchasing Managers’ Index (PMI) is a survey-based economic indicator that provides insight into the health and trends within the manufacturing and services sectors.
It is an index that shows whether, according to purchasing managers, business conditions are getting better, staying the same, or getting worse.
Also Read: Why the Number of Kenyans Purchasing Goods Has Increased Despite Inflation
A PMI reading above 50 signals expansion, below 50 indicates contraction, and a reading of 50 reflects no change from the previous month.
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