Despite the recent chaotic anti-government demonstrations, private companies in Kenya recorded a surge in the rate of employment in June 2024.
The Stanbic’s Purchasing Managers' Index (PMI) report revealed that the job creation in the private sector increased for the sixth consecutive month.
According to the report, job opportunities increased as private firms looked to expand their capacity to service their clients needs.
"Firms looked to expand capacity. The latest increase in employment was weakest observed in the year-to-date," read part of the report.
"Input prices in the Kenyan economy rose for the first time in three months in June, following a near-record decrease in the previous survey period."
However, despite the increase in job opportunities, private sector activity fell due to the impact of widespread anti-government protests.
The report further revealed that new business intake dropped at the fastest rate since November last year, leading to a drop in business confidence.
The Stanbic's Purchasing Managers' Index (PMI) fell to 47.2 in June from 51.8 in May, representing worse conditions for the private sector.
Readings above 50.0 signal an improvement in business conditions while readings below 50.0 show a deterioration.
"Tough economic conditions brought on by the cost-of-living crisis, as well as protests surrounding the country's finance bill hurt sales volumes," read part of the report.
"The decline was the sharpest recorded in seven months, which contrasted notably with the PMI's 16-month high of 51.8 in May."
Nonetheless, the downturn was partially softened by a rise in new orders across the manufacturing sector which was the only sector that recorded growth in June.
