There are two major businesses and sectors that plans to hire more employees between now and December. This is according to a Kenya National Chamber of Commerce and Industry (KNCCI) Q4 Business Barometer Report and published on Tuesday, October 14, 2024.
The report reveals that the manufacturing and energy sectors remain the most optimistic about hiring in the last quarter of the year with 60 percent and 54 percent respectively.
However, retail, wholesale and education sectors are at the opposite end of the spectrum.
“Businesses looking to hire are primarily anticipating marginal increases in staff size, driven by increased demand for commodities and business expansion plans,” the report reads in part.
The other factors for mentioned by these businesses include increased workload, seasonal factors (festive season) and improved financial position.
However, 47 percent of businesses surveyed do not plan to hire additional employees in the 4th Quarter (Q4) unliked in the 3rd quarter (Q3).
“Businesses planning to reduce staff are primarily expecting only slight reductions, driven by declining sales and challenging macroeconomic conditions like inflation and disposable income,” KNCCI said in the report.
Anticipations in Primary Input Costs
Additionally, 54 percent of businesses are pessimistic about a reduction in their primary input costs in Q4.
The figure marked a sharp contrast to the optimism seen in Q2 (39 percent) and Q3 (35 percent).
Additionally, the report revealed that businesses anticipating a decline in primary input costs are largely expecting slight reductions, spurred by better access to inputs and seasonal factors like the harvest period.
On the other hand, those expecting a rise in primary input costs are largely anticipating a slight increase, fueled by inflation, high taxation, and unfavourable government policies.
Generally, all sectors maintain a pessimistic outlook on reducing primary input costs, with mining, energy, and manufacturing expressing the greatest concerns.
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Challenges Facing Businesses
Similar to Q3 and Q3, high taxation, unfavourable government policies, and limited financial resources remain the most pressing challenges for businesses in Kenya.
The key needs of Kenya’s private sector cited by 74.2% of the respondents include access to capital, capacity building, and favourable government policies.
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KNCCI Report on Climate Change Mitigation
According to the report, just over half of the surveyed businesses are taking climate change mitigation and adaptation measures.
51 percent of businesses are doing this primarily through reusable bags and tree planting.
Lack of awareness about climate action still remains a significant barrier despite 88 percent of businesses receiving external support for climate change mitigation and adaptation.
From the businesses sampled, the agriculture and healthcare sectors are at the forefront of applying climate change mitigation and adaptation actions in their operations at 61 percent and 63 percent respectively
Besides, 39 percent of the sampled businesses are women-owned, with limited financial resources and the challenge of balancing work and family responsibilities being their most significant concerns.
Programs supporting women have a substantial presence nationwide, with Chamas, SACCOs, and Merry-go-rounds being the most notable initiatives.
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