NAIROBI, May 4 (Reuters) - Kenya's private sector
activity fell in April as both the manufacturing and services
sectors slowed, with inflation and political unrest leading to a
drop in consumer demand and dampening the outlook, a survey
showed on Thursday.
The Stanbic Bank Kenya Purchasing Managers' Index (PMI) fell
to 47.2 from 49.2 in March. Readings above 50 signal growth and
those below a contraction.
It is the third straight month the reading was below 50.
"The cost-of-living crisis continued to hinder business
performance, according to survey panelists, while an associated
bout of political unrest led to a marked drop in client demand,"
a text accompanying the survey said.
On Tuesday, Kenya's opposition resumed anti-government
protests after a one-month pause over high living costs and
alleged fraud in last year's national election, which its leader
Raila Odinga lost to President William Ruto.
Odinga suspended the demonstrations in early April, agreeing
to talks with Ruto's representatives. But Odinga later announced
the protests would resume, accusing the government of not
negotiating in good faith.
"Despite continued growth in export sales, deteriorating
domestic market conditions due in large part to higher costs and
political protests dampened business activity and domestic
demand as cost pressures continued to rise," Mulalo Madula, an
Economist at Stanbic Bank, said.
Inflation dropped to 7.9% year-on-year in April
from 9.2% in March, data from the statistics office showed.
(Reporting by George Obulutsa; editing by John Stonestreet)
george.obulutsa.thomsonreuters.com@reuters.net))
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