Why Kenyan Companies Are Not Planning Major Hiring Spree in 2026

The Central Bank of Kenya (CBK) reports that employment levels in Kenya are expected to remain broadly stable in 2026, with companies increasingly relying on digitisation, automation and resource optimisation rather than large-scale recruitment.

According to the CBK’s July 2026 Market Perceptions Survey, the findings were based on views gathered from chief executives and senior officers representing 400 private-sector firms.

The bank stated that companies expect to remain cautious about expanding their workforce despite anticipating a modest improvement in Kenya’s economic growth this year.

CBK Reports Hiring to Focus on Specialised Skills

According to the survey, recruitment in 2026 is expected to focus mainly on staff replacement, the conversion of selected contract roles into permanent positions, and the acquisition of specialised expertise.

Businesses are particularly expected to seek workers with skills in business development and digital technologies due to the increasing adoption of digitisation and automation, which are being used to improve efficiency and optimise resources, reducing the need for large-scale hiring.

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Despite the cautious employment outlook, businesses expect economic activity to remain moderate between August and October 2026.

The CBK survey found that respondents expect the period to be supported by recovery in tourism and construction, lower borrowing costs and sustained investment.

They also expect the country’s economic growth to improve modestly in 2026 compared with 2025, supported by stronger private-sector credit, lower lending rates, rising consumer demand and relatively stable macroeconomic conditions.

Lower Lending Rates and Rising Fuel Costs Shape Business Outlook

The research further revealed that commercial and microfinance banks expect moderate growth in private-sector credit, driven by lower lending rates following monetary policy easing, strategic loan book expansion, digital financial innovation and customer-level risk-based pricing.

In addition, the banks expect credit growth to benefit manufacturing, construction and hospitality, as well as targeted financing for micro, small and medium-sized enterprises.

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The CBK also highlighted that businesses expect inflation to edge up slightly over the next three months, with about 90% of respondents identifying higher fuel and energy prices as a primary driver of inflationary pressures.

The survey argued that higher fuel costs could increase transportation, electricity, production, and distribution expenses, pushing up the cost of goods and services.

Respondents also cited rising food prices, seasonal factors, poor harvests, and distribution challenges, as well as geopolitical tensions in the Middle East as potential sources of higher inflation.

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