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Orders picked up in September, and so did prices
Kenya’s monthly survey of private businesses rose to 51.3, its joint-best since January, as new orders grew. Costs for fuel, transport and farm produce kept rising.
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Stanbic Kenya PMI for September, up from 49.7. Above 50 means conditions improved
The Stanbic Bank Kenya PMI, a monthly survey of about 400 private companies, rose to 51.3 in September from 49.7 in August. A reading above 50 means business conditions improved on the month before. September’s was the joint-best reading since January, level with July.
Demand drove it. New orders have grown every month since June, and firms put September’s rise down to better demand, customer referrals, marketing and improving cash flow. Companies also bought more inputs, built up their stocks for the first time since June, and kept hiring.
Costs are still climbing
Output itself fell for the seventh month in a row, though only slightly - the smallest fall in that run. Firms said higher prices held production back, and some pointed to shortages of agricultural goods.
About 30% of the firms surveyed paid more for their inputs in September, against 1% who paid less. Fuel, transport and agricultural products were named most often. To protect their margins, firms raised their own prices at the second-fastest pace since November 2023; only June this year was faster.
Stanbic economist Christopher Legilisho said manufacturing, construction and services grew in September, while agriculture, wholesale and retail stayed under pressure.
Why it matters
- Orders are coming in across the economy. What stands between those orders and finished goods is mostly the cost and supply of inputs.
- Many firms are passing higher costs on in their prices, which shows up both in what suppliers charge and in what customers are asked to pay.
- The survey comes out early each month, so October’s reading will show whether the pick-up held.
Sources
- S&P Global - Stanbic Bank Kenya PMI, September 2026 · 5 October 2026
- Business Daily - Rising costs choke firms despite growing demand · 5 October 2026
