Kenya experienced the highest rate of growth in two years, as most sub-sectors experienced an upward trend in fortunes.
According to the Stanbic Kenya Performing Managing Index (PMI), April recorded an index of 52.0, up from 51.7 in March, and was at its highest level since the beginning of 2023.
Readings above 50.0 signal an improvement in business conditions from the previous month, while readings below 50.0 show a deterioration.
Strengthening customer demand led to the fastest rise in new work in over three years, prompting a solid expansion in output and steep growth in purchasing.
Job creation quickened as firms sought to ease workload pressures, with employment growth reaching its strongest level in nearly a year. However, hiring was primarily focused on temporary staff.
"The Kenya PMIs for April reveal a private sector expanding robustly and at the fastest pace in over two years," said Christopher Legilisho, Economist at Stanbic Bank.
Although cost inflation ticked up amid rising demand pressures, it remained modest when compared with the survey's historical trend.
The PMI also reported that new orders expanded at the fastest rate since February 2022, as Kenyan companies reported a sharp upturn in demand and additional sales from marketing.
Robust gains were observed across the services, agriculture and construction sectors, contrasting with lower sales in manufacturing and wholesale and retail.
After reaching a record low in March, business expectations saw a slight recovery in April, although they remained among the weakest levels ever recorded.
The PMI report recorded only five per cent of firms anticipating output growth over the next 12 months.
Even so, some companies hope to open new branches and introduce new products and services over the coming year.
“Overall, the April PMI implies a steady return to growth at the start of Q2:25. Further, inflationary pressures remained muted. Despite an improvement in future expectations, sentiment remains among the weakest in the survey's history,” stated Legilisho.
