Firms Brush Off Elections Uncertainty To Add New Jobs

 

By Kepha Muiruri

Kenyan private firms have ignored uncertainties’ surrounding the August 9 General Elections and high costs to add new jobs in July.

This is according to the just released Stanbic Bank Kenya Purchasing Managers Index (PMI) survey.

Employment in the local private firms has posted its first rise in three months with the worker bases rising in the sectors of agriculture, construction and services.

The number of staff in manufacturing, wholesale and retail was nevertheless on the decline in the period.

“Workforce numbers were expanded to help firms provide good quality products and services to their customers,” noted the survey.

Election uncertainties and inflationary pressures however saw overall private sector activity contract for the fourth straight month in the same period.

The headline PMI reading for instance fell to 46.3 points in July from 46.8 points in June.

The slack in business activity has been mirrored by subdued new orders with uncertainties’ deterring customers from committing to new ventures.

Across July, firms continued to raise their selling prices to protect profitability.

Further, declining new orders saw companies scale back on purchasing activity as they sought to preserve sufficient inventory levels for future order needs.

Confidence in the 12-month business activity outlook remained relatively unchanged in the month even as firms’ indicated plans to improve product offerings and expand operations.