Kenya’s private sector activity grew at a slower pace in June, hit by slower expansion in output and new businesses, with higher food and fuel prices posing a challenge to consumers, a survey showed on Wednesday.
The Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) for manufacturing and services fell to 55.0 in June from 55.4 in May. A reading above 50 denotes growth.
Economic activity has picked up this year after political unrest and drought cut growth last year to its lowest level in more than five years, and the Kenyan economy is forecast to expand by 5.8 percent this year from 4.9 percent in 2017.
Uncertainty has subsided after President Uhuru Kenyatta and opposition leader Raila Odinga reconciled in March and pledged to unite the country after last year’s hotly contested elections.
Survey compiler Markit said food and fuel prices had risen during the month, leading to the higher prices being passed to consumers.
