Kenya's private sector activity contracted in March 2026, first decline since August 2025, as PMI fell to 47.7.
Reduced consumer spending, tighter household budgets and Middle East war disruptions drove lower output, order books and inventory levels.
Cost pressures surged with purchasing prices rising fastest in over two years, while output prices rose slower, limiting price pass‑through.
Employment grew marginally, the weakest since Oct 2025, yet over 20% of firms expect growth and plan expansion investments.