A growing number of Kenyans are grappling with unemployment, a trend expected to intensify following the implementation of the Finance Act 2023.
A preliminary survey conducted by the Federation of Kenya Employers (FKE) reveals that, between October 2022 and November 2023, 3% of jobs (equivalent to 70,000 positions) were lost in the formal private sector.
FKE survey also indicates that 40% of employers are contemplating reducing their workforce to offset the escalating costs of doing business in Kenya.
The Federation emphasized the fragility of the current employment landscape, stating that recovery from the impacts of the COVID-19 pandemic remains elusive.
Also Read: KPLC Raises Alarm On Escalating Scams Targeting Innocent Citizens
“The employment state is still very fragile. We are not yet back on track since COVID-19. Every day we receive notifications from employers on their intent to declare redundancy,” cautioned FKE.
The Finance Act 2023 is cited as a major factor contributing to adverse changes in enterprises, including its direct impact on payroll management, effects on the demand for General Wages review, and the heightened risk of business closures, forcing employers to resort to laying off employees.
Kenyan shilling has experienced a significant depreciation, losing 21% of its value between September 13, 2022, and November 22, 2023.
The exchange rate against the USD surged to a high of 152.45, compared to 121.05 during the same period in 2022.
Analysts attribute this depreciation to capital flight and a decrease in foreign currency inflow due to the declining value of exports.
