Kenya has recorded the strongest private sector expansion among eight major African economies in November, according to a new report by S&P Global.
According to the survey, Kenya recorded a Purchasing Managers' Index (PMI) of 55, overtaking Nigeria, during this period.
The report attributed the growth to the rise in sales volumes and new customer orders, favorable prices, and new product launches across sectors.
Kenya was closely followed by its East African counterpart, Uganda, which recorded a PMI of 53.8, followed by Nigeria at 53.6 and Zambia at 51.1.
Mozambique and Ghana recorded marginal improvements at 50.8 and 50.1, respectively, according to the survey.
Responding to the survey, the National Treasury said the findings reflect growing investor confidence in the country’s stabilising economy and the ongoing reforms driving its economic momentum.
"New data from Finance in Africa shows that Kenya recorded the strongest private sector expansion among eight major African economies in November," Treasury stated.
"Kenya’s economy is moving with purpose, and the numbers are beginning to show it," it added.
The announcement comes a day after the latest Stanbic Bank Kenya Purchasing Managers’ Index (PMI) revealed that Kenya's reading marks, which match S&P Global's, were the highest since October 2020.
Companies attributed this rise to the improved marketing efforts in recent months and increased referrals, which have catalyzed overall business activity.
"The uplift in business activity was also one of the sharpest recorded in the survey's history. Survey panellists attributed the steep increase in output to stronger market demand," Stanbic Bank said in comments accompanying the survey.
Despite the improvement, companies warned that the material costs and higher taxation continue to strain their margins even as overall cost pressure softens.
