Kenya industry activity improves at slower pace in June
A return to more normal business environment has helped firms to expand their output for the second month running in June.
The latest Stanbic Bank Kenya PMI report shows a rise in business activity in both client numbers and the volume of cash circulation across Kenya.
The growth was, however, modest and slower than that recorded in May.
The agriculture, construction, manufacturing and services sectors recorded an expansion in output, whereas wholesale & retail saw a marginal decline.
Nevertheless, businesses outlook over the next 12 months fell to the second lowest rate in the PMI series with firms citing uncertainties in restrictions to contain the COVID-19 pandemic.
“Around 79 per cent of respondents predicted no change in output over the next 12 months. Notably, there were concerns that a further round of COVID-19 restrictions could harm business activity,” the report notes in part.
In the period under review, Kenyan based exporters continued to see a strong rise in export sales at the end of the second quarter buoyed by looser restrictions in European markets.
Owing to rising demand in Kenya’s private sector, companies have been on a hiring spree in June.
Stanbic Bank PMI’s seasonally adjusted employment index pointed to a second successive rise in staffing although the pace of new job creation slowed due to efforts by some firms to cut wage bills.
Subsequent to the staffing levels, the salaries paid to private sector workers went up for the second month running in June. The salary increase was attributable to efforts by companies to boost productivity.
