Most Kenyan businesses continued to employ more Kenyans in the month of November despite the economic hardships experienced in the country.
The latest survey from the Stanbic Bank Kenya released on Thursday, December 4, has revealed that most businesses recorded an increase in the number of those they absorbed.
However, the businesses did not employ on bigger margins despite the improvement as a result of the economic strain that is currently being experienced.
''For the second month running, the seasonally adjusted Employment Index posted slightly above the 50.0 no-change level in November, indicating a marginal increase in job numbers at Kenyan businesses,'' the Stanbic PMI report revealed.
Key businesses that employed more in the month of November include those in the fields of agriculture, wholesale, and retail.
The increase in the number of jobs hiring did not, however, reflect on the total earnings that employees took home at the end of the month.
This happened as earnings in salaries dropped for the first time in 10 months, probably due to the influence of the statutory deductions from taxes and the rest by the government.
''Salaries paid to private sector employees decreased on average throughout November. This was shown by the seasonally adjusted Staff Costs Index dropping below the 50.0 neutral threshold for the first time in ten months,'' the report added.
In contrast, firms and businesses engaged in manufacturing and construction did not hire as the number of those hired decreased in November.
''Employment grew on average across agriculture, wholesale and retail, and services, but decreased in manufacturing and construction. Hiring was mainly associated with higher workloads and greater marketing budgets,'' the report added.
The construction industry is currently the main alternative where most Kenyans especially the youth seek employment opportunities for formal and informal jobs.
President William Ruto has been banking on Affordable Housing projects across the country to provide alternative employment to the citizens.
However, the report showed that despite some businesses recording an increased trend in hiring, their expectations that their profits would increase as we move over to the next year remained low.
''Business expectations remained relatively weak and softened slightly since the start of the fourth quarter. Just 8% of firms expect activity to rise over the next 12 months, with comments relating positivity to new marketing, digital technologies, and branch openings,'' it added.
