Kenya’s job market is bracing for more turbulence as a new survey by the Central Bank of Kenya (CBK) reveals that 127 CEOs are preparing to cut jobs between July and September this year. The findings paint a bleak outlook for employment, with executives blaming the rising cost of doing business and declining sales for their decision.
Released on Tuesday, June 17, the report highlights growing pressure on companies to scale down operations. Many CEOs said that a surge in operational costs coupled with reduced revenue has made it difficult to maintain current staffing levels.
For job seekers, the situation looks equally dire. Out of 1,000 CEOs surveyed, a staggering 703 plan to maintain their existing workforce without adding new hires. Only 170 companies expect to recruit additional employees.
Despite the overall slowdown, the CBK report notes that hiring may increase in select sectors, especially agriculture.
“The number of full-time employees is expected to increase to support the increased business activity, particularly in the agriculture sector,” the report stated.
However, hopes for a broader recovery remain dim. Most executives in the manufacturing sector anticipate stagnant activity due to high production costs, low consumer demand, and heavy taxation.
To prevent further job losses, CEOs are urging the government to act. Their recommendations include slashing taxes, settling pending bills to ease cash flow constraints, and tackling inefficiencies in public institutions.
“Among the key recommendations was the lowering of costs of doing business (taxes) and the tackling of the non-tariff trade barriers in East Africa and Africa at large to promote regional trade,” the report noted.
Business leaders also called for efforts to fight corruption and dismantle barriers that continue to choke growth and investor confidence across the region.
