The Standard Chartered-MNI Business Sentiment Indicator (BSI), a survey that measures business confidence, dropped to a six-month low with a score of 57 down from 63.9 in January.
Kenyan businessmen had a difficult time in February as demand for their products fell forcing them to scale down their intentions to hire new employees.
The Standard Chartered-MNI Business Sentiment Indicator (BSI), a survey that measures business confidence, dropped to a six-month low with a score of 57 down from 63.9 in January.
Analysts at StanChart said the drop reflected a seasonal dip with businesses having enjoyed busy period in December and January owing to holiday spending and back-to-school shopping.
“The more negative view of the Kenyan economy revealed by our February BSI does not correlate with our view that the economy continues to grow strongly and is likely to see stronger economic momentum in the second half of 2016,” said Standard Chartered’s chief economist for Africa, Razia Khan.
Ms Khan pegged her optimism to the implementation of infrastructure projects which is expected to pick up in the second half as the Jubilee administration battles to fulfil its election promises ahead of next year’s polls.
StanChart’s BSI surveys 200 small and large companies in Nairobi and Mombasa on a monthly basis. The businessmen said their confidence levels had dropped due to rapid decline in new orders, shrinking of order backlogs and new fears over the stability of the shilling.
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Note: The results are not exact but very close to the actual.
