Kenya’s private sector displayed strong growth in November 2025, with the Stanbic Bank Kenya PMI reaching 55.0—the highest reading in over five years. This uptick was fueled by a notable surge in sales volumes and increased consumer purchasing power. Broad-based demand across all monitored sectors and sustained employment growth underscored the robust momentum.

Private Sector Growth Accelerates on Rising Demand

The latest Stanbic Bank Kenya PMI survey documented the fastest expansion in business activity since 2020. Sales rose across all five key sectors, driven by effective marketing strategies, increased customer referrals, and stronger interest in innovative products. Christopher Legilisho, economist at Standard Bank, emphasized that government stimulus measures deployed over the past 12 months are now invigorating the real economy. Firms responded by boosting inventory levels in anticipation of continued demand growth.

Employment increased for the tenth consecutive month, marking the second-fastest rise since August 2023. Additionally, businesses significantly stepped up purchases of inputs to meet growing client demand and replenish stocks, reflecting confidence in sustained market growth.

Inflation Eases and Supply Chains Strengthen

Pricing pressures moderated in November. Selling price inflation slowed to its lowest level since August, while input cost inflation recorded the softest increase in 18 months. Nonetheless, some companies reported that elevated tax rates are compressing profit margins despite improvements in cost conditions.

Supplier delivery times improved notably as competition among vendors intensified. Suppliers moved to accelerate deliveries to strengthen customer relationships, mitigating previous supply chain bottlenecks. This development contributed to the private sector’s resilient growth trajectory.

Looking ahead, business sentiment softened for the third month running but remained positive overall. Many firms cited plans to launch new marketing campaigns, expand operations, and diversify product offerings as strategies to maintain momentum.

Growth: Market Outlook

With the PMI rising to 55.0 in November 2025, Kenya’s private sector continues to demonstrate a solid growth path. The widespread uptick in sales, employment gains, and improved supply chain efficiency present a favorable environment for further expansion. Moderating inflationary pressures reinforce this outlook, suggesting that recent policy stimuli are effectively sustaining economic resilience.

For investors and stakeholders, these trends signal promising opportunities in Kenya’s evolving private sector as the economy heads into 2026. Although a degree of caution persists amid slightly softened sentiment, the fundamental growth indicators remain robust, supporting optimism for continued private sector development.