Watch the news & stories in motion: Subscribe to WeeTracker on YouTube
More Kenyans got employed in the private sector in June, the highest level recorded since December 2016, this is according to Stanbic Bank’s Purchasing Managers Index.
The report highlighted that the high employment was encouraged by the increased demand for goods in the domestic and foreign markets which further pushed the private sector growth to a 10-month high of 54.3 in June.
The growth in the sector signals improved operating conditions for the Kenyan private sector businesses, any Purchasing Managers’ Index (PMI) reading above 50 signals growth.
Stanbic ‘s regional economist for East Africa Jibran Qureishi, says that the growth was partly caused by the government’s release of payments owed to both contractors and suppliers as well as VAT refunds.
In his 2019/20 budget speech, Treasury CS Henry Rotich expressed government’s commitment to pay 10.9 billion shillings owed to its suppliers by the end of June
Most of the firms surveyed noted that their client base widened and that they received more orders during the month.
“The rate of increase for the output was markedly faster than in May, with only January posting stronger growth in the year-to-date. Some businesses related the rise in output to improved cash flow during the month, while others highlighted the impact of marketing activity on sales volumes.
“This fed through into a solid increase in staff numbers that was the quickest seen in two-and-a-half years,” the report noted.
Firms highlighted that a number of inflationary effects, such as higher taxes, fuel hikes, and increased input demand forced overall input costs to rise steeply, hence forcing them to raise prices.
Additionally, over the month of June, 92% of the companies expressed optimism of a better output in the next year, this was characterized by plans to open new branches and expand into other markets.
Image Featured Courtesy: Daily Nairobian Kenya
Found the article interesting ? Follow us on Twitter to see what others are saying about it.
9500+ subscribers are getting our free newsletter on African technology, startups and innovators bi-weekly.
Made with ❤ in Africa