Nairobi, Kenya As employers laid off 70,000 workers in the past one year, Kenyan employers project a further 40% job cuts. This has been attributed to the rising cost of doing business in the country.
The layoffs occurred between October 2022 and November 2023 according to the Federation of Kenya Employers (FKE).
According to the People Daily, FKE is expected to launch the full survey report on jobs trends next month, but there are early signs that 40 percent of the employers are set to further trim their workforce in the short term to stay afloat.
FKE Chief Executive Jacqueline Mugo blames the high cost of doing business on the implementation of the Finance Act 2023. Moreover, the weakening of the shilling against the dollar has worsened the situation and hit hard import-dependent firms.
Mugo said, “The employers’ view is that the changes have had an overall negative impact on cash flows and the financial positions of enterprises in various ways: Direct impact on the payroll, impact on demand for General Wages review, risk of business closure and increased laying off employees.”
As this happens, the FKE has reported that employers are dealing with a situation where potential employees lack the skills needed for the jobs they are interested in, urging job seekers to broaden their skill sets instead of sticking to only what they studied in institutions of higher learning.
The People Daily also reports that a recent report by FKE, in collaboration with Africa Digital Media Institute (ADMI), and Nexford University, shows information and communication technology (ICT) and finance sectors as the most affected by the severe shortage of quality and relevant skilled workforce.
Discussion about this post