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Business grew in October as costs rose fastest since 2023
The Stanbic Bank Kenya PMI rose to 52.5 in October from 51.3, with manufacturing leading output and new orders, while input costs rose at the fastest rate since November 2023.
Economy52.5
Stanbic Bank Kenya PMI in October, up from 51.3; above 50 means conditions improved
The Stanbic Bank Kenya Purchasing Managers' Index, compiled by S&P Global from a survey of private firms between 12 and 28 October, rose to 52.5 in October from 51.3 in September. A reading above 50 means business conditions improved.
Output rose for the first time in eight months, and new orders grew sharply. Of the five sectors surveyed, manufacturing posted the quickest rises in output and new orders. Unfinished work built up at the fastest rate in seven years, and employment rose for the fifth month running.
Costs
About 36% of firms reported higher input costs in October, against 2% that reported a fall. That made it the fastest rise in costs since November 2023, and firms most often pointed to fuel and transport. They raised their own selling prices at a quicker pace in response.
Firms were also more hopeful: 51% expect higher activity in a year's time, up from 31% in September and the most since March 2020.
Why it matters
- The PMI is a monthly reading of demand and costs at private firms, and manufacturing led it in October.
- Rising costs, mostly fuel and transport according to the firms surveyed, mean pressure on margins and on prices.
- The November reading is normally published in the first days of December.
Sources
- S&P Global / Stanbic Bank - Stanbic Bank Kenya PMI, October 2026 · 4 November 2026
- CNBC Africa - Kenya private sector rises in October, PMI shows · 4 November 2026
- Pulse Kenya - Stanbic PMI: business confidence at six-year high · 4 November 2026
