NAIROBI, Sept 3 (Reuters) – Kenya’s private sector activity contracted for the first time in three months in August, as supply constraints and cost pressures led companies to reduce output and purchases, a survey showed on Thursday.
• The Stanbic Bank Kenya Purchasing Managers’ Index fell to 49.7 from 51.3 in July, dropping below the 50.0 threshold that separates growth from contraction.
• High raw materials costs and tight cash flows limited firms’ ability to translate stronger demand into output, Stanbic Bank economist Christopher Legilisho said.
• Inflation rose slightly to 6.6% year-on-year in August from 6.5% in July, the statistics office said.
• Kenya’s finance ministry forecasts economic growth of 5.1% in 2027 and 5.2% in 2028, up from an estimated 5.0% this year.
(Reporting by George Obulutsa; Editing by Hugh Lawson)
