In July 2024, private sector activity in Kenya fell to 43.1% as a result of the protests. This contraction is linked to a fall in production and new orders, compounded by a shortage of liquidity and inflationary pressures. Businesses cut back on purchases, especially in the agricultural sector, while input costs rose, pushing up selling prices. Delivery times were extended for the first time in ten months. Despite this economic downturn, job creation continued to rise, while inflation fell slightly to 4.3%.
Private sector activity contracted to 43.1% in July 2024, following the ongoing protests in Kenya. The deterioration in economic conditions is attributable to a rapid decline in production and new orders, mainly as a result of the political turmoil in the country. In addition, cash shortages and pressures on the cost of living have also led to reduced demand and economic activity
« Serenity fuels the development of private sector activity. Without serenity and confidence, the private sector is unable to develop. The private sector is not able to produce enough and the market, not having enough production, there is automatically inflation that sets in due to the scarcity of products. »
Honoré MONDOMOBE, Expert in economic intelligence – Cameroon
In July 2024, companies reduced their input purchases and inventories, mainly in the agricultural sector. Against this backdrop, input costs rose for the second month in a row, resulting in a further increase in selling prices. Supply chains were also impacted, with suppliers extending delivery times for the first time in ten months.
« The value chains have seized up. And this situation is slowing down the supply of products to the market. The slowdown in the supply of products to the market inexorably causes prices to rise, due to the scarcity of these products ».
Honoré MONDOMOBE, Expert in economic intelligence – Cameroon
Investors and businesses are urged to adopt a cautious attitude until political tensions ease, experts advise. Although economic activity declined, job creation in Kenya continued to rise for the seventh month in a row. Meanwhile, inflationary pressure eased from 4.6% in June to 4.3% in July.