September was the best month for Kenyans seeking jobs in the private sector, as the rate of employment was the highest since May 2023.
According to the latest Stanbic Purchasing Managers’ Index, an increase in business growth resulted in a massive surge in employment that helped companies clear their work backlogs.
The index revealed that the agriculture and manufacturing sectors were mainly responsible for the rise. However, in contrast, job numbers decreased in the construction industry.
Consequently, higher employment numbers led to an increase in staff costs, extending the run of inflation that began at the start of the year.
In September, Kenya’s PMI rose to 51.9, up from 49.4 in August. The rise saw Kenya’s PMI go above the neutral 50.0 mark for the first time since April.
Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
Driving the improvement in business conditions was a renewed expansion in activity, which in turn was strongly related to rising sales and a stabilising economy.
Out of the firms surveyed, roughly a third (33 per cent) noted that their output had grown during September, compared to 23 per cent that recorded a decline. Some businesses reportedly benefited from effective marketing and investment in products and services.
The increased output came after four months of contraction, as firms made a solid recovery after a period affected by political protests.
Like output, companies in Kenya reported an increase in new orders for the first time in five months in September. The upturn was solid and one of the quickest seen for nearly three years.
Despite improved growth and performance, business optimism among companies slipped from August's two-and-a-half-year high.
When asked about their expectations for output in the next 12 months, 22 per cent of respondents were positive, while 78 per cent were neutral.
Among those firms with an optimistic outlook, comments revolved around expansion plans, product launches, greater marketing activities, and investments in operating capacity.
