A survey published today, Tuesday, showed that private sector activity in Kenya contracted last March for the first time since August last year, partly due to the American-Israeli war imposed on Iran and tensions in the Middle East, where only the wholesale and retail trade sectors witnessed growth.
The survey showed that the Purchasing Managers’ Index issued by Stanbic Kenya Bank decreased to 47.7 points in March, compared to 50.4 points in February. Readings above 50.0 indicate business growth, while readings below that indicate contraction. This is the first time since August 2025 that the index has fallen below 50 points.
In the context of commenting on the survey, Stanbic Bank said: “The slowdown in private sector activity was generally driven by demand, as many companies indicated limited customer spending, decreased cash circulation, and tight household budgets.” He added, “The Middle East war also resulted in more cautious spending patterns among some companies, as well as logistical restrictions on customer deliveries and higher fuel and transportation prices.”
Kenyan President William Ruto said on March 30 that the government was assessing the impact of the war on prices, and that measures were being taken to ensure that Kenya maintained sufficient supplies. The Stanbic Kenya survey indicated that the only sector that witnessed growth in March was the wholesale and retail sector.
