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The labor market in Kenya has been finding it difficult to keep up with businesses over the past several years, particularly during President William Ruto’s tenure.
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The circumstances have led multiple businesses to furlough employees as the administration keeps raising taxes, thereby affecting their functioning.
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Meanwhile, several state-owned enterprises have started recruiting employees, indicating a somewhat conflicting picture of Kenya’s job market.
Boniface Kanyamwaya, who works as a journalist for .co.ke, boasts over a decade of experience in areas such as finance, economics, business, markets, and aviation. He offers valuable perspectives on both Kenyan and international developments.
The employment landscape in Kenya has shown varied responses following President William Ruto’s assumption of office after his victory in the 2022 General Election.
Despite certain businesses dismissing employees because of challenging market conditions exacerbated by high taxation and rising prices, governmental organizations are still hiring staff.
According to a recent report from the Federation of Kenya Employers (FKE), rising inflation and increased taxation under the present government have led to significant job losses in Kenya. The organization claims these factors have adversely affected payroll management and reduced overall salary demands, resulting in numerous businesses closing down.
“Since the onset of the pandemic caused by Covid-19, we have not fully returned to our normal trajectory. Daily, we receive communications from businesses indicating their plans for layoffs,” stated FKE in a recently viewed communiqué.
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In this challenging climate, which state-run companies have kept their workforce intact?
1. KenGen
The Kenya ElectricityGenerating Company Plc (KenGen) is looking to hire senior management positions to replace those vacated by previous employees. According to an announcement published in a local newspaper on Tuesday, March 25, KenGen stated that prospective candidates should apply through the company’s career website.
2. Teachers Service Commission
The Teachers Service Commission (TSC) announced 2,014 job openings to fill gaps left by departing educators due to normal turnover. According to an announcement posted on MyGov on Tuesday, May 6, among these roles, 1,309 would be for primary schools, 32 were designated for junior schools, with the remaining 673 intended for secondary school instructors.
3. The Kenya Institute of Mass Communication (KIMC)
The organization extended an invitation for applications from individuals with KCSE qualifications as well as certificates to occupy various roles. KIMC mentioned that those who are selected will receive contracts lasting three months, and potential applicants must submit their application before April 11th. The vacancies available at this government-run entity include spots for chefs, gardeners, housekeepers, and administrative assistants.
Various governmental bodies such as Kenya Power, the Central Rift Valley Water Works Development Agency, and the Kenya Revenue Authority, along with several others, have declared new employment opportunities.
President Ruto directs employers to enforce a minimum wage hike of at least 6%.
On Thursday, May 1, President Ruto instructed employers to promptly enforce the mandated 6% hike in the minimum wage.
An instruction to raise employees’ wages by 6% was issued last year, yet it hasn’t been put into effect. The minimum wage refers to the least sum of money that an employer must provide to a worker for services rendered over a certain timeframe.
President Ruto also stated that to enhance employees’ net salaries, employers must now directly incorporate allowable tax relief and exemptions during the PAYE calculation process.
He stated this would mark a considerable change from the present system, wherein these benefits could solely be claimed through the Kenya Revenue Authority. Such an adjustment would enhance efficiency and provide immediate advantages to workers.
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