Browsing: impact of inflation on Kenyan businesses

• The increased credit to the private sector is associated with positive growth-focused policies.
• The data shows that there was robust private credit growth except for the tourism industry which is still coming out of the post-pandemic period.  
• Overall lending rates dropped slightly from 16.8 percent in August 2021 to 16.1 percent in August last year. 

Tanzania is pushing for private sector growth evident in increased credit to the private sector, according to the World Bank.

In the most recent World Bank report on Tanzania’s Economic Update, the growth rate of credit to the private sector increased from 3.2 percent in August 2021 to 20.7 percent in August 2022 and is expected to grow further this year.

The increased credit to the private sector is associated with positive growth-focused policies designed to support private sector recovery in a post-pandemic and slowing global global growth environment.

The development comes as the country …

• The PMI Survey has found that Kenyan businesses witnessed increased demand for their exports in the international market in November 2022
• New order inflows received by Kenyan businesses rose in November, extending the current growth sequence to three months
• Although marginal in November, the rate of employment growth was the quickest since July 2022, attributable to a rise in new orders

Kenyan businesses witnessed increased demand for their exports in the international market in November 2022. This is according to the latest Purchasing Managers’ Index (PMI) commissioned by Stanbic Bank Kenya. The index found that the rise in export orders strengthened further from October figures, having increased in each month since April 2022.

At the same time, new order inflows received by Kenyan businesses rose in November, extending the current growth sequence to three months. The rate of increase accelerated from the previous survey period and was modest but slower …