Kenya's private sector records sharpest job gains in November
Kenya's private sector reported increased activity in November 2025 with companies reporting increased orders, powered by soft inflationary pressures.
Kenya's private sector experienced one of the sharpest increase in new hires in November with statistics showing employment increased for the 10th month in a row, with the latest growth being the second fastest since August 2023.
According to the Stanbic Bank's Purchasing Managers Index (PMI) survey, Kenya's private sector reported increased activity during the month under review with companies reporting increased orders, powered by soft inflationary pressures.
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At 55.0 in November, the headline PMI was up strongly from the 52.5 recorded a month earlier attributable to sharper rise in sales during the eleventh month of the year. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
“Employment levels ticked up at one of the fastest rates this year due to the improving economic conditions," explained Christopher Legilisho, Economist at Standard Bank.
When adjusted for seasonal variation, the Employment Index recorded in above-50 territory for the 10th consecutive month in November, indicating another rise in staff numbers at Kenyan companies.
Moreover, the rate of job creation was the second-fastest in over two years. All five monitored sectors saw an increase in employment since the previous month, the report notes in part.
The survey, which sought views from 400 private sector companies, covered players across agriculture, mining, manufacturing, construction, wholesale, retail and services sectors in the country.
Meanwhile, during the month under review, surveyed companies noted improved purchasing power among customers contributed to higher sales volumes. This trend was partly linked to a moderation in inflationary pressures.
“Inflation expectations are anchored, as echoed by the survey. Kenyan businesses reported softer increases in input prices, purchase prices and output prices, while wages costs were unchanged. Although, firms still note rising material prices and higher taxation as impacting their margins," explained Legilisho.
Looking ahead in the next one year, companies anticipating increased activity cited planned marketing campaigns, business expansion initiatives, and efforts to diversify their product and service offerings.
