Employers Give Projections for Job Recruitment and Layoffs for 2025

Most employers will retain their current workforce in the first quarter of 2025, a survey by the Central Bank of Kenya (CBK) shows.

In its November report released on Wednesday, December 11 report, CBK noted that 697 out of 1,000 CEOs surveyed indicated plans to retain their current employees without any firings or recruitment planned.

The stability in maintaining employees was attributed to the projected expected items of sales and business for various organisations.

"The survey shows that 41.1 per cent and 42.5 per cent of the respondents expect increased demand orders and growth in sales, respectively," read the report in part.

"Nevertheless, more respondents expect stability in the number of full-time employees, purchase and sales prices during the quarter."

Meanwhile, out of the 1,000 company and industry leads surveyed, only 114 of them revealed that they had plans to undertake recruitment between January and March.

Conversely, 189 CEOs indicated that they would be forced to reduce their current workforce in the 2025 Q1.

The CEOs also attributed the firings and layoffs to the low business activity expected in Q1 of 2025.

"The cost of doing business, increased taxation and reduced consumer demand are key domestic factors that could constrain firms’ growth in the next 12 months," read the report in part.

"However, firms will mitigate the constraining factors by managing costs and risks, diversifying operations and increasing sales and marketing of their goods and services."

The company and industry executives also proposed for President William Ruto's government to reduce tax rates and ensure certainty around taxation.

They also urged the Kenya Revenue Authority (KRA) to fasten tax refunds.