Kenya’s private sector performance is expected to maintain a productive trend this year despite foreseen uncertainties.
In an interview with the Star, Purchasing Managers’ Index (PMI) for Kenya who is also Stanbic Bank’s fixed income and currency strategist Kuria Kamau attributed the growth to ease of Covid-19 pressures.
”The ease of restrictive Covid-19 preventive measures globally has created fertile ground for business recovery and overall economic growth,” Kamau said.
Private Sector Activity
He added that Kenya, just like the global economy is growing more resilient to Covid-19 shocks.
”This level of optimism is expected going forward, aiding business recovery.
This is even as the country moves closer to the general election in August,” Kamau said.
He expects the country’s PMI to remain above 50 points next month pushed up by back-to-school orders.
Even so, he expects various economic sectors to grow negatively.
Those expected to grow are those areas pulled down by Covid-19 wave-like tourism and education solidify.
”Agricultural sector that accounts for 25 percent of the country’s GDP is likely to be affected by low rainfall.
This is as forecasted by the Kenya Metrological Department,” he said.
Even so, others like tourism which were crushed to the core by the virus that manifested in the country in March 2020 are expected to grow.
The growth is as optimism among travelers globally grows on the heightened vaccination campaign.
He expects the overall economy to continue growing steadily in the range of nine percent quarter -to quarter.
This is witnessed in the second and third quarters.
Kenya’s private sector performance improved at a solid pace in January, driven by a sharp increase in output and new business.
According to the monthly Purchasing Managers’ Index (PMI) by Stanbic Bank, the sector grew 53.2 during the month under review.
This is up from 51.4 in December the highest reading for three months according to The Star.
A PMI of 50.0 signals an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.