More Kenyan Chief Executive Officers (CEO) are freezing the hiring process till the end of the year according to a survey conducted by the Central Bank of Kenya (CBK).
CBK survey that targeted CEOs of more than 1,000 private sector firms through online questionnaires showed that 63.5 percent will not be hiring.
Over 26 per cent noted that would cut jobs between now and January 2024.
The interviewed CEOs attributed the sudden freezing of recruitment to increased operating costs and softened demand for goods and services.
According to the survey, the measures would impact families leading to gloomy festive seasons.
“Respondents reported subdued business activity in 2023 Q3 compared to 2023 Q2 due to high input costs and reduced consumer demand,” CBK stated.
The survey covered hotels and restaurants, ICT and telecoms, transport and storage, real estate, manufacturing, healthcare and pharmaceuticals, financial services, professional services, agriculture, tourism, and wholesale and retail trade.
About 77.9 pe rcent of CEOs surveyed told the CBK they had seen a rise in purchase prices of raw materials and goods for sale between June and September when compared to the second quarter of the year.
Just 22.8 per cent of the firms had seen a rise in demand for goods and services compared with 37.5 per cent which saw a drop in demand and 39.7 per cent which did not see a change in demand.
Despite the outlook, President William Ruto invited several multinational firms to set up bases in the country.
Amazon, Apple, and other investors from Silicon Valley approached by Ruto during his US tour are expected to help save the situation.
The affordable housing programme is also touted to tap into the skilled labour market hence reducing the unemployment gap in the country.
