Kenya private sector activity expands in February - PMI

NAIROBI (Reuters) - Kenyan private sector activity returned to growth in February, helped by manufacturing and agriculture after a drop in COVID-19 infection rates, a survey showed on Wednesday.

The Markit Stanbic Bank Kenya Purchasing Managers' Index (PMI) rose to 52.9 in February from 47.6 a month earlier. The 50.0 mark separates growth from a contraction in activity.

"Manufacturing and agriculture firms experienced the strongest upturns in output during February," Stanbic Bank Kenya said in a note accompanying the results of the survey.

Wholesale and retail, however, experienced a decline, the survey showed.

Like other countries, Kenya's economy is starting to recover from the effects of the COVID-19 crisis, helped by the easing of restrictions aimed at containing the spread of the virus.

The statistics office said in late December that the economy grew 9.9% in the third quarter, compared with a 2.1% contraction in the third quarter of the previous year.

"Domestic demand recovered strongly in February driven by increased customer numbers following a reduction in COVID-19 cases," Kuria Kamau, Fixed Income and Currency Strategist at Stanbic Bank, said.

"Firms responded to the higher demand by increasing their output and quantity of purchases significantly during the month."

(Reporting by George Obulutsa; Editing by Hugh Lawson)