The year will end on a low note for a section of Kenyans who are set to be rendered jobless. Over 50 per cent of Kenyans working in four companies are set to be left jobless after their respective companies announced plans to either close down or reduce the number of workers following a tough economic year.
Procter & Gamble, Base Titanium, G4S, and Tile & Carpet are the four corporations that have issued orders to their staff regarding layoffs and closures.
Procter and Gamble (P&G), the American manufacturers of Always and Pampers have revealed plans to lay off 850 employees as it has plans to leave Nairobi by December 2024 due to the high cost of doing business.
Australian Miner Base Titanium is also set to lay off 1,200 employees by December 2024 as it ceases its operations in Kwale County.
A section of employees working at the Tiles and Carpet Athi River production department will lose their jobs beginning December 6, 2024, after the company announced upcoming redundancies, citing economic and production challenges as key drivers.
"We wish to inform you of an upcoming organizational restructuring within the production Department-Atho River Department, effective December 6, 2024," the company told its employees in an official statement.
G4S, one of the leading global integrated security companies, has also announced plans to fire about 400 employees in the next six months.
In a letter addressed to the Ministry of Labour and Social Protection, the firm attributed the decision to diminished business opportunities occasioned by the harsh economic times.
By October 2023, over 30 manufacturing companies had shut down production plants in Kenya for over a decade.
The ease of doing business in Kenya continues to be more and more difficult for investors who are now looking into other nations to invest. This continues to put more Kenyans in the unemployment range, despite President William Ruto's promise of creating more jobs.
In its Q3 finance report, the Central Bank of Kenya revealed that only 34 per cent of CEOs believed their companies recorded growth compared to 19 per cent of them who stated the opposite.
According to the report by CBK, geopolitical tension, energy prices, and inflation remained the most pertinent global factors that businesses contend with.
Locally, the cost of doing business remains a major concern for CEOs, followed by high taxation and political uncertainty.
The situation continues to paint a foul picture to the Kenya Kwanza government which continues to grapple with joblessness. According to data by Statista Market Focus 1.76 Million Kenyans are unemployed in 2024.
