More Kenyans to remain unemployed as more others to loose their jobs

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Chief executives plan to decrease their payrolls before January 1, 2024, which portends doom for Kenyan workers as the country prepares for the holidays.

In a study done by the Central Bank of Kenya (CBK) between September 4 and 15, roughly 26.3% of business owners said they will cut back on staff in the fourth quarter of 2023.

1,000 CEOs from a variety of industries, including manufacturing, finance, professional services, healthcare, tourism, agriculture, and storage were surveyed by CBK.

In addition, 635 firms said they had no intentions to hire new employees, which is bad news for many Kenyans looking for work.

Only 102 CEOs said they planned to hire more people before the end of 2023.

The managers cited a challenging economic environment brought on by high taxes, rising company expenses, declining consumer demand, and the exchange rate as some of the justifications for reducing their payrolls.

Employers are now under more pressure as a result of the Finance Act 2023’s passage because they must now match new employee deductions.

For instance, businesses are now compelled to match the 1.5% housing fund contribution made by employees. In addition, several VAT rates have been raised, as have the rates for the National Social Security Fund (NSSF).

Top employers cut employees in Q4 of last year as a slowdown in the economy hurt businesses. Data from the Kenya National Bureau of Statistics (KNBS) show that by the end of 2022, there were 2.97 million unemployed Kenyans.

This was an increase of 2.94 percent from the 2022 Q3 figure. Reduced business as a result of political unrest and uncertainty that clouded the 2022 elections was cited as the cause of the losses.

The vast majority of unemployed Kenyans were in the age range of 18 to 30.

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