Private sectors where employers are actively hiring; PMI report
Kenyan private sector businesses continued hiring in April 2026 despite a slowdown in overall economic activity, according to the latest Purchasing Managers’ Index (PMI)
Kenyan private sector businesses continued hiring in April 2026 despite a slowdown in overall economic activity, according to the latest Purchasing Managers’ Index (PMI) compiled by S&P Global in partnership with Stanbic Bank Kenya.
The report released on Wednesday, May 6, shows that employment in the private sector increased for the 15th consecutive month, even as business activity contracted for the second month running, pointing to a growing disconnect between hiring patterns and economic performance.
The headline PMI stood at 49.4 in April, slightly higher than March’s 47.7 but still below the 50.0 threshold that separates growth from contraction. This indicated that Kenya’s private sector remained under pressure overall.
Despite this, firms continued to add staff, with many businesses reporting that they were hiring mainly casual and temporary workers to support ongoing operations and short-term projects.
The report identifies wholesale and retail trade, agriculture, and services as the key sectors still driving employment growth, even as demand weakens and costs rise across the economy.
According to the survey, many companies opted to maintain or slightly expand their workforce in anticipation of future demand or to avoid operational disruptions, rather than in response to immediate business growth.
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However, most of the new hiring was not permanent. Firms increasingly rely on flexible labour arrangements, suggesting that businesses are trying to control costs while still maintaining adequate staffing levels.
“Employment conditions remained robust in April, with firms mostly hiring temporary workers. Inventory levels recovered notably as firms stocked up ahead of inevitable price increases,” Christopher Legilisho, an economist at Stanbic, said.
The PMI data also shows that while output and new orders continued to fall, the rate of decline slowed compared to March, indicating that the downturn may be stabilising rather than accelerating.
At the same time, businesses faced sharp increases in input costs, with inflation rising at its fastest rate since December 2023. Higher fuel prices and transport costs were the main drivers of the increase.
These rising costs were partially passed on to consumers through higher selling prices, which may continue to weigh on demand and limit the sustainability of job growth in the coming months.
Despite the pressure, business confidence remained cautiously positive, with some firms expressing optimism about expansion plans, product diversification, and marketing-driven growth in the next 12 months.
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