An aerial view of Nairobi, Kenya's capital. [Photo:trvl.com]
Business confidence in Kenya bounced in November but remained suppressed for the seventh consecutive month.
The November Stanbic Bank Kenya Purchasing Managers’ Index says manufacturing and services rose to 43 points last month, from 34.4 in October.
Business confidence remained well within contraction level of below the 50 mark.
The last seven months have been bad for the business environment in Kenya.
A severe drought and a long electioneering period and low credit to the private sector have all conspired to rob the economy its shine.
This has been marked by low agricultural output and suppressed manufacturing leading to a significant drop in exports.
The Stanbic Bank Kenya Purchasing Managers’ Index, however, says business confidence is rebounding with a season-high reading of 43 points last month, from 34.4 in October.
The index that compiles sentiments from purchasing managers says there was increased job shedding while hiring remained weak in the month.
The month capped a long political grandstanding pitting the opposition and Jubilee with President Uhuru Kenyatta being sworn in to finish his second and final term.
The report says lower political risk could provide the platform for Kenya’s private sector to stage a recovery over the near to medium term.