Kenya's growth rate dropped for the first time in nine months, and this has been the main reason businesses are struggling, according to a new report.
The new Stanbic Purchasing Managers' Index (PMI) report shows the country's growth dropped to 49.6 in May from 52.0 the previous month. The drop was attributed to rising prices of goods and services, which affected customer spending and led to weaker business activity.
The downturn ended a seven-month run of improving business conditions, although the rate of decline was mild as businesses continued to raise their stock levels and labour capacity.
Traders conducting business in a town in Kenya Photo According to monitored firms, customer demand was lower due to rising prices and challenging economic conditions.
