60% of Kenyan Businesses Halt Hiring in 2025 - KNCCI Report

Kenyan youth queuing on Wabera Street in Nairobi, waiting for services on May 26, 2018.
Kenyan youth queuing on Wabera Street in Nairobi, waiting for services on May 26, 2018.
Photo
Kenyan magazine

60 per cent of Kenyan businesses are not looking to hire new employees in 2025, depicting a worrying trend for thousands of jobless Kenyans.

The Kenya National Chamber of Commerce and Industry (KNCCI), during the launch of its 2025 Business Barometer report at Serena Hotel, Nairobi on Tuesday, February 4, revealed that 8 business sectors were planning to cut on hiring due to several factors.

The 8 business sectors included retail and wholesale, professional services, hospitality and tourism, manufacturing and processing, transport, financial services, and mining.

According to the report, the decision to halt further employment of Kenyans this year was informed by the poor macroeconomic conditions in the country coupled with high taxation, and unfavourable government policies.

Kenyans Queue for jobs in Kisii town
Kenyans Queue for jobs in Kisii town
Photo
PSC

“High taxation, unfavourable government policies, and limited access to capital are set to pose significant challenges to the growth of Kenya’s private sector in 2025,” the report revealed.

Despite the looming unemployment in the eight sectors, education, healthcare, and the Information Communication and Technology sectors expressed optimism in making more hirings in 2025.

The Kenya Federation of Employers (KFE) in its 2025 Youth Employment Report revealed that the overall unemployment in Kenya stood at 12.7 per cent with youths aged between 5  years and 34 years forming the highest unemployment rate of 67 per cent.

FKE further noted that over one million young people enter the labour market annually without any skills some having either dropped out of school or completed school and not enrolled in any college.

"This is a problem that the continent must address to avert uprising and therefore maintain peace to attract investment and create wealth and the much-needed employment," Jacqueline Mugo, the FKE Chief Executive Officer (CEO) stated in a recent presser.

In May last year, President Ruto expressed the government's intention in addressing unemployment in the country. Speaking in Murang'a County, the Head of State cited the establishment of the ICT hubs and the ongoing construction of affordable houses as vital sources of employment for the youth.

Meanwhile, KNCCI in its report also disclosed that most businesses in the country were also expecting marginal revenue growth mainly driven by an expanding customer base and enhanced marketing efforts.

Additionally, the survey revealed that several businesses in Kenya were not implementing climate change mitigation and adaptation measures such as proper waste management or even planting trees.

An aerial view of Nairobi City's skyline in 2023.
An aerial view of Nairobi City's skyline in 2023.
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Eyeconic Media