FX.co ★ Kenya Private Sector Shrinks the Most in 11 Months

In June 2025, the Stanbic Bank Kenya Purchasing Managers' Index (PMI) dropped to 48.6 from 49.6 in May, marking its second straight month of contraction. This figure signals the sharpest decline since July 2024, primarily attributed to downturns in production and new orders, influenced by reduced consumer spending, adverse economic conditions, and disruptions caused by protests. Nevertheless, employment saw a slight uptick for the fifth month running, although the increase was minimal. Additionally, supplier performance improved markedly, achieving its best result in almost two years. Regarding pricing, input costs rose to a five-month peak, while the inflation of output prices decelerated to a four-month low, as businesses sought to retain their customer base. Furthermore, business optimism reached its highest point since May 2024, driven by expectations of enhanced sales and market growth.