Share
Kenyan businesses cut jobs in May for the first time in 15 months as weakening demand and rising costs spill into the labour market, pushing companies to tighten spending and scale back expansion plans.
Private sector firms reduced staffing levels after more than a year of continuous job creation, according to data from Stanbic Bank Kenya’s latest Purchasing Managers’ Index (PMI), with many companies citing cuts to temporary contract workers amid deteriorating business conditions.
The job cuts mark a reversal after more than a year of resilience in private-sector employment, adding to concerns about job creation at a time when thousands of young Kenyans enter the labour market each month.
“Private sector businesses in Kenya signalled a renewed decline in staff numbers during May, ending 15 months of continuous job creation. Panelists reported that the fall often reflected reductions in temporary contract staff,” the survey said.
