In a recent survey by the Central Bank of Kenya (CBK), 127 Chief Executive Officers (CEOs) revealed plans to reduce their workforce.
As detailed in the report published on Tuesday, June 17, the firings are expected to happen between July and September this year.
The CEOs who expressed their intention for layoffs explained that the cost of doing business had gone up, hence the need for changes.
The company executives also reported a reduction in sales within the last few months.
Equally, there is little hope for job seekers as 703 out of the 1,000 CEOs surveyed revealed that they would maintain their workforce.
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Only 170 CEOs noted that their companies would be recruiting additional staff.
"The number of full-time employees is expected to increase to support the increased business activity, particularly in the agriculture sector.
"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," read the report in part.
To address any future job losses, the CEOs called on the government to reduce their taxes, a move that will see the cost of doing business go down.
"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.
