Kenya’s private sector expanded in September 2025, as measured by the Stanbic Bank Kenya Purchasing Managers’ Index (PMI). The index climbed to 51.9 from 49.4 in August, signaling renewed growth after months of contraction.
Most sectors contributed to the rebound, except construction, which saw output drop. Analysts attributed the broader recovery to stronger domestic demand and easing disruptions.
This improvement comes against a backdrop of earlier instability. Widespread protests in mid-2025 had muted economic activity and shaken business sentiment. With those disruptions fading, momentum began to return. Kenya’s year-on-year real GDP in the second quarter of 2025 stood at 5.0 percent, up from 4.6 percent in the same period a year earlier.
Economists see the PMI rise as an early signal that Kenya’s economy is regaining traction. But challenges persist. The construction sector needs stimulus and clarity on infrastructure projects. Inflation and interest rates must be managed to support sustained growth. Public debt and fiscal deficits could restrain the government’s flexibility.
Still, if private sector growth continues, Kenya may surpass earlier estimates. Growth in digital services, finance, and trade could lead the next phase of expansion. Policymakers will need to maintain macro stability, promote structural reforms, and nurture investor confidence to convert the rebound into durable gains.
