NAIROBI (Reuters) – Private sector activity in Kenya expanded in August, helped by greater political stability that boosted both services and manufacturing, a survey showed on Tuesday.
The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rose to 50.6 in August from 45.5 a month earlier, breaking a six-month streak below the 50 reading that separate growth from contraction.
Many of the companies surveyed “noted that greater political stability had helped to boost demand and lead to higher activity,” Stanbic said in comments accompanying the survey.
In July, Kenya’s opposition coalition held five at times violent protests against tax hikes and high living costs, before agreeing to talks with President William Ruto.
The survey said a weakening shilling, increased fuel prices and higher taxes had however weighed on economic performance.
“Tough business conditions and inflation pressures remain a pressing concern,” Stanbic Bank economist Christopher Legilisho said.
(Reporting by George Obulutsa; editing by John Stonestreet)
