Kenyan firms resumed hiring in November. Many had frozen recruitment in October. This shift followed a strong rebound in private sector activity. The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) shows the strongest performance since October 2020. The PMI rose to 55.0 points in November. It stood at 52.5 in October. A score above 50 indicates growth in private-sector activity. The latest reading signals the fastest improvement in over five years.
Broad Based Hiring as Demand Strengthens
New hiring rose sharply in November. The rate was the second fastest in more than two years. All five monitored sectors increased their staff levels. These sectors include agriculture, mining, manufacturing, construction, and wholesale/retail services.
The Employment Index stayed above 50 for the tenth straight month. Stanbic confirmed a broad rise in job creation. Every monitored sector reported more staff.
This performance contrasts sharply with October. In that month, 97 percent of surveyed firms kept their payrolls unchanged. Companies chose caution due to weak demand. In November, demand improved. Firms responded to higher workloads. Sales and output rose at the fastest pace since October 2020. Stronger customer purchasing power supported this growth. Softer inflation also helped.
Marketing campaigns boosted visibility. New products attracted more buyers. Customer referrals increased sales. New business volumes rose for the third month in a row. The PMI report described this growth as the strongest in over five years.
Costs Ease but Confidence Softens
The recovery followed months of weak growth in early 2025. High living costs and expensive materials had slowed activity. New taxes added more pressure on firms. Input purchases rose sharply in November. This increase showed growing confidence among businesses. Input prices rose only slightly. This was the weakest rise in 18 months. Staff costs also grew at a slow pace. These trends eased cost pressure on firms.
Lower costs and stronger sales allowed firms to rebuild stock. Many expanded operations after a tough year of tight cash control.
However, business confidence dipped again. Optimism fell for the third consecutive month. Firms remained cautious. Higher taxes, unstable consumer spending, and global risks continued to worry businesses. Companies still expect growth over the next year. But the confidence level is lower than the peak seen in August.
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