(Nairobi) – Kenya’s businesses are facing a severe economic downturn, leading to widespread job cuts. A growing number of companies have announced layoffs in recent months, citing rising operating costs, declining demand, and the overall economic climate as the primary reasons.
Major corporations such as G4S, Tile & Carpet, and Procter & Gamble have recently revealed plans to reduce their workforce. G4S, a security services provider, notified the Ministry of Labor that it would be laying off approximately 400 employees due to financial constraints. Similarly, Tile & Carpet, a construction materials manufacturer, has announced production cuts and subsequent job losses. Procter & Gamble, a multinational consumer goods giant, is also considering significant layoffs in Kenya.
The Central Bank of Kenya’s latest survey indicates that a substantial portion of Kenyan companies have resorted to layoffs in 2024. The survey revealed that 42% of companies had laid off casual workers, 31% had cut contract staff, and 25% had terminated permanent employees. These findings highlight the severity of the job market crisis.
Several factors have contributed to this economic downturn, including high taxes, increased production costs, and reduced consumer spending. The Kenyan Revenue Authority has reported a decline in tax revenue from individual employees, suggesting that many workers have experienced reduced incomes or job losses.
The Federation of Kenya Employers (FKE) is expected to release a comprehensive report on the job market situation later this month. However, preliminary estimates suggest that tens of thousands of Kenyans have lost their jobs over the past year.