Kenya's private sector activity expanded in July, though inflation pressures and logistics bottlenecks limited the pace of growth, a survey showed on Wednesday.
The Stanbic Bank Kenya Purchasing Managers' Index rose to 51.3 from 50.0 in June, suggesting demand is beginning to recover, the bank's economist said.
Readings above 50.0 indicate growth in business activity; those below signal contraction.
"The July PMI suggests that demand is beginning to recover but cost pressures and logistics bottlenecks are still constraining activity," said Stanbic Bank economist Christopher Legilisho.
In July, Kenya's finance ministry said it forecasts the economy to grow 5.1% in 2027 and 5.2% in 2028, up from an estimated 5.0% this year.
Inflation rose slightly to 6.5% year-on-year in July from 6.4% in June, data from the statistics office showed.
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