The Kenyan economy suffered a sharp contraction during April, as the latest private sector performance survey indicated the first declines in activity and new business since June last year. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration. Subsequently, employment numbers, input purchases and inventories were all lowered, but cost pressures continued to rise due to higher fuel prices and supply shortages. With demand for inputs falling, supply chain performance improved again in April as vendors had fewer deliveries to make. However, lockdown restrictions led to delays for a number of firms, with the overall reduction in lead times the slowest for 11 months.

Source: The Star May 06, 2021 00:56 UTC