Kenya's Private Sector Hiring Surges as Firms Win More Customers Despite Supply Snarls

Kenya's private sector stepped up hiring in July at the fastest pace this year as stronger sales encouraged businesses to add workers, even as supply chain disruptions and rising operating costs continued to constrain production. 

• The latest Stanbic Bank Kenya Purchasing Managers' Index (PMI) showed employment expanded at its quickest rate in 2026, driven largely by companies taking on short-term staff to cope with rising workloads after customer orders picked up.
• The overall PMI rose to 51.3 in July from 50.0 in June, signalling an improvement in business conditions after four months of stagnation or contraction. 
• Business confidence has strengthened to its highest level in nearly three-and-a-half years, supported by expectations of stronger demand, business diversification, digital investment and efforts to optimise supply chains.

"Kenya's PMI increased in July as conditions in the private sector improved. The headline gain was mainly driven by stronger new orders and modest short-term hiring," Stanbic Bank economist Christopher Legilisho said, adding that delayed imports and elevated input costs continued to prevent firms from fully converting orders into output. 

Firms attributed the rise in sales to customer referrals, targeted marketing campaigns and the launch of new products and services. The stronger demand marked the second consecutive month of rising orders after a three-month slowdown. 

Despite the improvement in sales, many companies were unable to translate new business into higher production.

Output declined for the fifth consecutive month, reflecting persistent inflationary pressures, tight liquidity and operational constraints that limited firms' ability to fulfil growing demand. As a result, uncompleted work accumulated for a second straight month. 

The report suggests businesses responded by recruiting temporary workers rather than making long-term employment commitments.

All sectors covered by the survey recorded an increase in staffing, with respondents saying additional workers were hired mainly to manage expanding workloads rather than support capacity expansion.