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Economy

Poll jitters cut business output to four-year low

The electoral commission’s consultative meeting at the Bomas of Kenya. file photo | nmg
The electoral commission’s consultative meeting at the Bomas of Kenya. file photo | nmg 

Businesses have sharply cut output in a tough economic climate that saw the private sector activity shrink to a nearly four-year low last month, shaken by prolonged electioneering period and drought.

Stanbic Bank #ticker:CFC said in its monthly market survey that output tumbled for the fifth month in a row in September, weakened by a constrained money circulation and dropping customer orders.

The downturn pushed firms into trimming their payroll numbers, according to the Kenya purchasing managers’ index (PMI) survey.

“For a fifth consecutive month conditions in Kenya’s private sector continued to deteriorate which is reflective of the protracted political impasse in the country,” said Jibran Qureishi, Stanbic’s economist for East Africa.

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