Kenya’s private sector is gearing up for increased hiring in 2025, signaling renewed business confidence despite the strain of higher taxes and rising operational costs, according to the Central Bank of Kenya’s (CBK) September 2025 Market Perceptions Survey.
The report indicates that optimism across key industries remains strong, buoyed by macroeconomic stability, easing inflation, and rising consumer demand. Businesses anticipate growth opportunities that could fuel job creation, particularly in the manufacturing, ICT, logistics, and construction sectors.
The ICT industry continues to stand out, supported by Kenya’s expanding digital economy and investments in data infrastructure. Similarly, construction is experiencing momentum from ongoing public infrastructure projects, housing developments, and private real estate investments.
Employers also cited improved access to credit and a stable Kenya Shilling as major enablers of expansion. Some banks have reportedly eased lending conditions for small and medium-sized enterprises (SMEs) the largest contributors to employment in the country.
However, businesses expressed concern about rising tax obligations, particularly following the 2024 Finance Act, warning that increased fiscal pressures could restrict wage growth and hiring capacity. Delayed government payments were also flagged as a persistent challenge, causing cash flow problems for suppliers and contractors.
Despite these hurdles, most firms expect moderate employment growth over the next six months, driven by stronger consumer spending and a steadier business climate.
Economists say the findings point to a cautious but genuine recovery in Kenya’s job market. “The private sector appears ready to expand again after two years of cost containment,” noted one Nairobi-based analyst. “The key test will be whether fiscal policy supports or stifles this momentum.”
If the government manages to ease liquidity constraints and reduce tax pressures, experts believe the emerging hiring wave could help lower youth unemployment and sustain Kenya’s post-pandemic economic recovery.
