Wamuzi News Ke
April unleashed a storm of business activity like the country hasn’t seen in over two years! Companies across the board scrambled to snap up raw materials and critical supplies, responding to a dramatic spike in customer orders that sent production into overdrive.
Economic Shockwave: Fastest Growth Since 2022!
According to a newly released Stanbic Bank Kenya PMI report, the index jumped to 52.0 in April from 51.7 in March—the highest surge since January 2023 and the third consecutive month of private sector expansion. It’s the strongest signal yet that Kenya’s economic engines are roaring back to life, especially in agriculture and services.
BOOM in Demand Sends Businesses Into Inventory Frenzy
An explosion in customer demand triggered the largest spike in new orders in over two years, forcing businesses to ramp up output and stockpile goods at record speeds. Inventory build-up reached its fastest pace in six months as companies braced themselves for further surges.
“We Had to Act Fast” – Economist Weighs In
Christopher Legilisho, an economist at Standard Bank, attributed the boom to smarter customer strategies and aggressive marketing, which propelled sectors like construction and services into hiring mode. Though many positions were short-term, it marked the fastest employment growth in almost a year.
Prices Skyrocket as Costs Soar – Consumers to Feel the Heat!
But the celebration comes with a price. Input costs soared to a three-month high, driven by relentless tax pressures and persistent supply issues. The manufacturing sector, in particular, began offloading these rising expenses onto consumers, igniting fresh inflation fears.
Inflation on the Rise, Confidence in the Gutter
Kenya’s inflation rate climbed to 4.1% in April, up from 3.6% the previous month—the highest since August 2024—fueled by ballooning food, transport, and housing costs. Meanwhile, a cloud of uncertainty still looms: only 5% of businesses expect growth over the next year, signaling deep concern over the country’s financial trajectory.
Tax Chaos Continues to Cripple Growth
Adding fuel to the fire, businesses are still grappling with a crushing tax burden: 16% VAT, 30% corporate tax, plus a slew of excise duties that are making financial planning a nightmare.
Bottom Line? Kenya’s private sector is accelerating—but it’s racing through a minefield of rising costs, tax hurdles, and shaky confidence. The economy might be heating up, but under the surface, pressure is boiling.
