A Manager's Purchasing Index (PMI) report by Stanbic Bank has revealed that many firms expect weak business activity in 2025.
As detailed in the report released on Wednesday, February 5, only 6 per cent of surveyed companies expect positive economic output.
The companies' revelation, therefore, spells doom for many Kenyans seeking employment as job creation depends on companies' positive economic growth.
"Finally, expectations for business activity over the next 12 months remained among the weakest observed on record in January, despite improving slightly since the end of last year," read the report in part.
"Only 6% of surveyed companies gave a positive output projection, with strategic focuses such as new products and services and increased marketing activity reportedly driving these forecasts."
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Meanwhile, the report revealed that many companies increased prices of consumer commodities in January.
This was attributed to the rise in the cost of importation.
"On prices, the latest survey data offered mixed results in January. Overall input prices continued to rise at a solid pace, which companies largely attributed to the impact of higher taxation on imported material prices. However, the rate of inflation softened from December when it reached its highest level since January 2024.
"In many cases, firms reporting higher purchasing costs raised their selling charges accordingly. The overall increase was solid, but the softest recorded in three months," the bank added in the report.
