(Kenya) – Job losses are rising across Kenya as companies struggle with economic challenges, even as the government asserts that the economy is on a recovery path. The global security firm G4S is the latest company to announce a major layoff, stating that it will reduce its workforce by 400 employees as part of a restructuring effort to counter a tough business environment.
At least 40 percent of employers affiliated with the Federation of Kenya Employers (FKE) indicated by the end of 2023 that they planned to reduce staff in 2024 to offset rising operational costs. This pool of employers includes around 2,000 member associations across key sectors like manufacturing, retail, and services. The notice from G4S adds to a series of recent redundancy announcements, painting a bleak picture for Kenya’s labor market, despite the government’s optimistic economic outlook.
In its redundancy notice submitted on November 4, G4S Kenya explained that the reduction was due to a downturn in business, citing “ongoing economic challenges” that have led to declining revenue and increased operational costs. Human Resources Director Helgah Kimanani communicated the company’s intent to the Ministry of Labour and Social Protection, noting that the layoffs would impact both management and union positions across the country from November 2024 to April 2025.
G4S, however, affirmed its ongoing commitment to the Kenyan market, emphasizing that it aims to adopt measures to preserve some employment while ensuring sustainable business operations. Kimanani also assured the Ministry of Labour that G4S would meet all legal requirements related to the layoffs.
G4S is not alone. Several companies, including Tile and Carpet Centre and advertising firm WPP Scangroup, have recently initiated similar downsizing efforts. Tile and Carpet Centre, for example, will begin downsizing its Athi River production facility in early December as part of a strategic realignment plan aimed at long-term stability. Mandeep Degon, the company’s Head of Human Resources, said this move comes in response to reduced demand and broader economic constraints.
WPP Scangroup, a listed advertising company, also faced challenges in meeting revenue targets. In May, the firm laid off 102 employees and restructured several departments to control costs. Meanwhile, media company Standard Group, based on Mombasa Road, announced in July that it would reduce its workforce by 300 as part of an extensive restructuring plan. Other companies like Copia, Wire Products Limited, and Tropikal Brand Africa have also issued layoff notices in recent months, citing similar economic pressures.
According to FKE, Kenya saw an estimated 70,000 formal private-sector jobs disappear between October 2022 and November 2023. Many employers are scaling back their workforce in response to persistent economic hurdles, which have sharply impacted business profitability and forced organizations to rethink their staffing levels.
These widespread layoffs come even as government leaders maintain that the economy is recovering, with a post-COVID inflation rate at a 14-year low of 2.7 percent as of October 2024. Yet, while these indicators might suggest improvement, the impact of rising unemployment is hitting many households hard. With so many companies reducing their workforces, workers and their families across the country face significant financial strain as Kenya grapples with a complex economic landscape.