Kenya's private sector growth holds steady in February, outlook dim

NAIROBI (Reuters) - Kenya's private sector held steady in February, expanding at a similar pace to the previous month, a survey showed on Wednesday.

The Stanbic Bank Kenya Purchasing Managers' Index (PMI) rose to 50.6 in February from 50.5 a month earlier. Readings above 50.0 signal growth in activity.

"Sector divergences were apparent ... with output and new business growth driven by agriculture, manufacturing and construction. Meanwhile, wholesale & retail and services firms recorded declines," Stanbic Bank said in comments accompanying the survey.

However, most companies surveyed took a dim view of business conditions overall.

"Only 5% of surveyed firms expect output to rise over the next 12 months, with positivity only recorded in three of the five monitored categories: construction, wholesale & retail and services," Stanbic Bank said.

The finance ministry forecasts the economy will grow 5.3% in 2025 and 2026, speeding up from an estimated 4.6% expansion last year.

(Reporting by George Obulutsa; Editing by Hugh Lawson)

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