Kenya has emerged as Africa’s top performer in private sector growth, recording the fastest expansion among eight major African economies in November, according to the latest Purchasing Managers’ Index (PMI) surveys by S&P Global.
The country’s PMI rose to 55.0 from 52.5 in October, marking the strongest growth in five years and a firm rebound from earlier disruptions caused by protests.
The growth reflects rising business activity across multiple sectors, driven by higher sales volumes, an increase in new customer orders, and a wave of successful product launches.
Companies responded to growing demand by boosting input purchases and hiring at one of the fastest rates since 2023, while improving supplier delivery times allowed businesses to rebuild inventories.
“Inflation expectations are anchored,” said Christopher Legilisho of Standard Bank, noting that although input, purchase, and output prices have increased, the pace has softened.
He added that higher material costs and taxes continue to put pressure on margins, but overall business confidence remains positive.
Kenya’s performance topped regional peers, with Uganda following at 53.8, Nigeria at 53.6, and Zambia at 51.1. Mozambique and Ghana showed modest improvements at 50.8 and 50.1 respectively, while Egypt’s private sector returned to growth for the first time in nine months with a PMI of 51.1.
South Africa was the only country still in contraction, highlighting its divergence from the region’s strengthening trend.
The PMI surveys track key business indicators including output, new orders, employment, supplier delivery times, and inventory levels.
Analysts say Kenya’s strong showing reflects both economic reforms and improving business confidence, with ongoing stability encouraging expansion across industries.
The positive momentum aligns with broader regional trends. In its latest Africa’s Pulse report, the World Bank projected sub-Saharan Africa’s GDP to grow from 3.5% in 2024 to 3.8% in 2025, averaging 4.4% between 2026 and 2027. Cooling inflationary pressures and supportive policy measures are helping sustain this recovery.
Kenya’s rapid private sector expansion underscores its resilience and positions the country as a leading driver of economic growth in Africa, signaling optimism for continued investment and business activity in the coming months.
