Private sector under pressure as fuel prices hit demand

The private sector remained under pressure in April, as rising fuel prices linked to the conflict in the Middle East pushed up business costs and weakened consumer spending. The latest Stanbic Bank Kenya PMI shows business conditions contracted for a second straight month, with firms reporting higher transport and shipping costs, softer demand and growing fears over supply shortages. Even so, companies continued hiring and building up inventories in anticipation of further price increases.