127 CEOs in Kenya Announce Plans for Mass Layoffs

More Kenyans are set to lose their jobs after 127 company chief executive officers unveiled plans to reduce their workforce.

According to the Central Bank of Kenya (CBK) CEO survey, the company leaders noted that the workforce changes will be implemented between July and September 2025.

The report published on Tuesday, May 17, attributed the planned layoffs to the drop in sales and the high cost of doing business.

On the other hand, only 703 out of the 1,000 CEOs surveyed noted that they would maintain their current workforce, dealing a blow to job seekers.

Only 170 CEOs noted that they would be conducting recruitment in their companies.

Most of the recruitment is expected in the agricultural sector.

"The number of full-time employees is expected to increase to support the increased business activity, particularly in the agriculture sector," read the report in part.

"However, the majority of respondents in the manufacturing sector expect activity to remain largely unchanged, on account of the high cost of doing business, low consumer demand, taxation, and levies."

Job Losses Between April and June

Employed Kenyans in the manufacturing sector were among the worst hit, with 23.5 percent of companies reducing their workforce.

Similarly, 23.8 per cent of companies in the service sector also fired some of their employees due to a tough business environment.

More respondents reported increased business activity, supported by seasonality factors. This was reflected in higher growth in sales, production volume, demand orders, and the number of full-time employees in 2025 Q2 relative to the previous quarter," read the report in part.

"However, prices of goods and services purchased were lower, supported by low commodity prices and a stable exchange rate. On the other hand, despite the elevated costs of doing business, prices of goods and services sold remained relatively unchanged as firms were reluctant to pass on the costs to retain customers, amidst the muted consumer demand."

Recommendations

During the survey, the CEOs also recommended that the government enforce some changes to boost the growth of businesses in the country.

"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," read the report in part.

"The recommendations include hastening the settlement of pending bills to boost business cash flows and managing corruption and inefficiency in government institutions."