The Central Bank of Kenya (CBK) May 2024 survey reveals that 215 companies intend to reduce their workforce by 18 % from 2023 levels. The survey highlights that only 8 % of CEOs see hiring or talent retention as a solution to their growth challenges. Chief Executive Officers from over 200 private sector companies are planning substantial layoffs in 2024 as a cost-cutting measure.
Many respondents attributed the anticipated decline in business activity for the next quarter of 2024 to the expected fiscal policies in the Finance Bill 2024.
The 2024 Economic Survey indicated that non-bank private firms employed 2,073,600 people in 2023. With an 18 % reduction, approximately 373,248 jobs are projected to be lost in 2024. The surveyed sectors included financial services (17 %), manufacturing (12 %), professional services (11 %), agriculture (10 %), healthcare and pharmaceuticals (9 %), tourism, hotels, and restaurants (8 %), ICT and telecommunications (7 %), transport and storage (4 %), real estate (3 %), and education (3 %). Other sectors like wholesale and retail trade, construction, mining, energy, and media each accounted for 2 % or less.
The survey also noted that companies experienced increased business activity in the second quarter of 2024 compared to the first. Sectors like finance, agriculture, education, and ICT saw improved performance, while health, retail trade, tourism, transport, and storage faced slower activity.
Executives expressed concerns about the Finance Bill 2024, fearing it would further increase business costs and lead to additional job losses. Despite this, they remained hopeful for global and local business growth in various sectors during the second quarter of 2024. The May 2024 CEOs Survey cited macroeconomic stability, easing inflation, and potential interest rate declines as factors supporting sustained growth.
| GDP (nominal) | Capital | Head of State | Head of Government | GDP (nominal) per capita | GDP (PPP) | GDP (PPP) | GDP (PPP) per capita |
|---|---|---|---|---|---|---|---|
| Kenya | Nairobi | William Ruto | William Ruto | 112.749 | 2.188 | 338.964 | 6.577 |
Have you read?
Countries: Powerful Passports.
Countries: Richest.
Countries: Poorest.
Countries: Happiest.
Countries: Life Expectancy.
Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact: info@ceoworld.biz
