The Central Bank of Kenya (CBK) report indicates that some sectors are less optimistic about hiring in 2026.
In the March 2026 Market Perceptions Survey, CBK noted that this is largely driven by the need to reduce costs, streamline operations, lower overheads, and invest in efficiency-enhancing measures such as digital transformation and artificial intelligence.
“Some sectors were less optimistic about hiring in 2026, reflecting the need to reduce costs, streamline operations, lower overheads, and invest in efficiency-enhancing measures,” read part of the report.
However, the survey indicated that the banking sector is the most optimistic about hiring in 2026, with planned recruitment largely aimed at supporting business growth and attracting new talent.
CBK Gives Reasons Why Non-Banking Sectors Are Not Hiring
According to the survey, the following are reasons why some sectors are cautious about hiring:
Agriculture sector
Firms in agriculture are limiting hiring mainly due to cost pressures and the need to improve efficiency, with many prioritizing streamlining operations over expanding their workforce.
Some are also facing uncertain returns and industry constraints, making them cautious about adding staff.
Trade sector
In the trade sector, hiring is being slowed by cost reduction measures and the need to protect profit margins.
Businesses are also focusing on efficiency and overhead management, with some indicating weaker growth prospects and increased competition.
Manufacturing sector
Manufacturers are holding back on recruitment largely due to high production costs and the push for operational efficiency.
Increased focus on automation and digital transformation is also reducing the need for additional labour in some areas.
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Real estate and construction
Hiring in this sector is constrained by project-based demand and cost management concerns.
Firms are cautious amid market fluctuations and are prioritizing the completion of existing projects and expense management over workforce expansion.
Transport and logistics
CBK notes that companies in transport and logistics are limiting hiring as they focus on cutting costs, improving efficiency, and optimizing existing capacity.
Some firms are also investing in technology and systems to enhance operations instead of increasing staff numbers.
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Hospitality
While there are signs of recovery, some hotels remain cautious about hiring due to cost control measures and efforts to stabilize operations.
Even with improved bookings, firms are prioritizing efficiency and profitability before committing to large-scale recruitment.
Across the broader non-bank private sector, firms are cautious due to cost containment strategies, the need to improve productivity, and ongoing digital transformation.
Many are hiring only to replace existing staff, rather than expanding teams.
