…..New S&P Global data shows Kenya posted the strongest private-sector expansion in Africa, driven by higher demand, easing inflation, and rising business confidence.
Kenya has surpassed Nigeria to become Africa’s best-performing private-sector economy, following new Purchasing Managers’ Index (PMI) data released by S&P Global.
According to the latest Finance in Africa analysis, Kenya posted a headline PMI of 55.0 in November—its highest level in five years and the strongest among eight major African economies tracked in the report.
A PMI reading above 50 indicates business expansion, while a reading below 50 signals deterioration.
Kenya Records Strongest Business Growth in Five Years
The report shows that Kenya’s private-sector rebound was driven by a surge in new orders, supported by stronger consumer purchasing power, easing inflation, and successful product launches across industries.
Businesses responded by increasing output, expanding workforce numbers, and boosting inventory levels—signs of broad-based economic recovery following disruptions caused by anti-government protests earlier in the year.
Christopher Legilisho of Standard Bank noted that inflation expectations remain “stable,” with firms reporting smaller increases in input and output costs. However, he warned that rising material costs and new taxes continue to pressure profit margins.
Nigeria Slips Behind Uganda as Kenya Dominates the Rankings
Across the continent, Uganda ranked second with 53.8, Nigeria followed closely with 53.6, while Zambia posted 51.1. Mozambique (50.8) and Ghana (50.1) also recorded mild expansion.
Egypt returned to growth for the first time in nine months, reporting a PMI of 51.1. South Africa was the only major African economy still in contraction.
Kenya’s Treasury Reacts to the Ranking
The National Treasury said the figures reflect the country’s rising economic momentum, driven by structural reforms and improved business confidence.
“Kenya’s economy is moving with purpose, and the numbers are beginning to show it,” the Treasury stated.
What the PMI Measures
The PMI is a globally recognized economic indicator that assesses business conditions based on output, employment trends, new orders, supplier delivery times, and inventory levels. A reading above 50 signals expansion; below 50 indicates contraction.
