Business Daily
Date: 06.04.2016
Page 19
Article size: 167 cm2
ColumnCM: 37.11
AVE: 70511.11
Kenyan businesses create more jobs in
March despite lower output, exports
BY CHARLES MWANIKi
Kenyan businesses created additional
jobs in March despite recording lower
output on the back of falling client or­
ders, the CfC Stanbic purchasing man­
agers index (PMI) survey for March
monthly increases. Costs for m ost firms
also eased in March largely on the back
of declining oil prices and a more stable
exchange rate.
"Jobs growth was maintained at
shows.
Kenyan private sector firms in March.
Some businesses reported they lost Though easingto afour­month low, the
clients during the month as new orders, rate of hiring was still solid overall," said
especially from the import side of busi­ CfC Stanbic.
nesses, fell.
"Both salaries and purchase prices
In February, the businesses had re­ rose to the least extent in 14 months. Ac­
ported higher output, new orders and cording to panelists, a lack of produc­
employment due to high demand for tion had resulted in fewer overtime
Kenyan goods from neighbouring Afri­ payments, while lower fuel costs were
can economies including Uganda, which again mentioned." According to busi­
is Kenya's biggest export market.
ness managers, the month­on­month
Businesses responded to the down­ growth in output was one of the weak­
turn of demand in March by avoiding est recorded in the 27 months the sur­
salary increments.
vey has run.
They were also helped by lower costs
Expansi on of output and new orders
as tariffs levied by authorities which de­ eased sharply with the survey showing
clined last month following 11 straight this was chiefly due to subdued global
mand.
Weaker currencies in the eastern and
southern African region against the shil­
ling and the dollar over the past one year
have made Kenyan exports expensive,
which eventually trickles down to affect
the performance of local businesses.
The PMI index fell back to 52.6 in
March, from 55.2 in February. A read­
ing above 50 signals improving busi­
ness conditions and below 50 a dete­
rioration.
CfC Stanbic however expects the
slowdown will be temporary due to fa­
vourable macroeconomic conditions
where inflation has come down, the
exchange rate stabilised and the secu­
rity situation improved.
27
The month­on­month growth in out­
put was one of the weakest recorded
growth rather than soft domestic de­
in the 27 months the survey has run
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya