Kenya’s private sector closed 2025 on a strong note, with Stanbic Bank Kenya’s Purchasing Managers’ Index (PMI) rising to 53.7 in December, signaling robust growth in business conditions and renewed momentum across the economy.
According to the Stanbic Bank Kenya PMI released on January 6, 2026, the latest reading, together with November’s 55.0, represents the highest PMI levels recorded in four years.
Readings above 50.0 indicate an improvement in business conditions, underscoring a sustained expansion in the non-oil private sector as the year came to an end.
“Kenya’s private sector economy recorded another solid upturn in the final month of 2025, as business activity was again boosted by a robust increase in customer demand and mild cost pressures,” the report said.
Firms reported “marked rises in activity, sales and purchases,” reflecting stronger demand conditions and healthier supply chains.
One of the standout features of the December survey was employment growth. Strong business momentum prompted companies to expand their workforce at the fastest pace since November 2019.
The report noted that “strong growth momentum led companies to expand their employment levels at the fastest rate in over six years,” highlighting growing confidence among businesses.
Purchasing activity also rose sharply, with firms increasing input buying to build stocks, secure market positions and capitalize on improved supply conditions.
“Kenyan firms also reported a sharp rise in purchasing activity in December,” the survey found, signaling expectations of continued demand growth in the months ahead.
Business output increased at a historically elevated pace, supported by rising order book volumes. Although December’s growth was slightly slower than November’s — which marked the strongest expansion in over five years — it remained robust.
Companies also reported strong increases in sales volumes, aided by improved tourism, stronger general demand, increased advertising and the ability to pass on subdued cost pressures through “more affordable prices.”
However, the report noted that inflationary pressures reaccelerated slightly from November’s lows, with a quicker uptick in input price inflation recorded in December.
Overall, the December PMI data showed Kenyan firms making “robust efforts to build capacity,” both to meet existing orders and in anticipation of future growth. Improved expectations for output suggest that the positive momentum seen at the end of 2025 could carry into 2026, reinforcing optimism about Kenya’s private sector outlook.
