Firms raise prices to protect profits amid inflation pressure

Kenyan businesses raised prices for goods and services last month at the second-fastest pace in three years to protect profit margins from rising fuel, transport and purchasing costs. The latest Stanbic Bank Kenya PMI shows that new orders are increasing, but cash-flow difficulties and inflationary pressures are limiting production, backlog clearance and hiring. The cost pressures threaten to weaken a private-sector recovery driven by improving customer demand.