Financial pressures, excessive workloads and poor job placement are fuelling workplace stress among Kenya’s formal sector employees, with a new study showing that 87 per cent experience stress at work.
The findings, released by consultancy firm Niche Human Capital Advisory, indicate that nearly nine in every 10 employees are affected, highlighting the growing impact of economic challenges and organisational inefficiencies on employee wellbeing and productivity.
According to the study, rising stress levels are translating into lower productivity, increased absenteeism and higher staff turnover, creating additional costs for employers.
Niche Human Capital Advisory partner Rebecca Gichuki said many organisations still approach employee wellness as an occasional initiative instead of integrating it into recruitment, talent management and staff retention strategies.
She identified financial insecurity as the leading cause of workplace stress, noting that businesses are grappling with a difficult economic environment while trying to strike a balance between managing wage costs and maintaining profitability.
Gichuki said companies are under pressure to remain competitive without increasing payroll costs beyond what their revenues can support, a challenge that ultimately affects employees.
The study also found that poor organisational structures contribute significantly to workplace stress. Employees placed in roles that do not align with their qualifications or skills, unclear responsibilities, ineffective leadership and poor communication were all cited as key stress factors.
Gichuki said organisations need to focus on placing employees in positions that match their expertise to improve performance and reduce workplace frustration.
The research further revealed that staffing shortages are forcing many employees to shoulder workloads meant for multiple people, leaving workers overwhelmed and increasing the risk of burnout.
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To address the issue, the consultancy recommends that employers first assess employee satisfaction before reviewing staffing levels, organisational structures and reporting lines. It also suggests hiring additional staff or restructuring teams where employees are consistently handling the work of several people.
The study identified the NGO sector as having the highest workplace stress levels among the industries surveyed, a trend attributed to demanding reporting obligations and strict performance targets imposed by international development partners.
Despite these challenges, Gichuki noted that Kenya compares relatively well with other countries in the region on workplace wellness, although many employees continue to work under significant pressure.
The findings come as more businesses invest in healthier work environments to improve employee wellbeing, productivity and staff retention.
Workable co-founder and chief executive Samir Patel said companies are increasingly recognising that workplace environments have a direct impact on employee performance.
He argued that investing in employee wellbeing should be viewed as a strategic business decision rather than an added expense, noting that personnel costs account for the largest share of business expenditure.
According to Patel, creating healthier workplaces helps reduce absenteeism, lowers sickness-related downtime and fosters environments where employees are motivated to perform at their best.
