Kenya has witnessed an economic shift in 2025, with several companies both state-owned and private have been forced to lay off employees.
This wave of layoffs has led to significant job losses, affecting many citizens and raising fresh concerns about the stability and future of the country’s labor market.
The companies have cited various reasons for the layoffs, including economic challenges, redundancy, restructuring, financial struggles, and in some cases, complete exits from the Kenyan market.
Others have also pointed to declining business, rising defaults, and operational queries as reasons behind the layoffs.
Some of these companies include Radio Africa Group, OLA Energy, CMC Motors, KK Security, Tala and Posta Kenya.
Companies That Have Fired Employees Since the Start of 2025
Radio Africa
Radio Africa Group Limited became the latest company to lay off employees after announcing the dismissal of 27 staff members as part of a major internal restructuring effort.
The Group Chief Executive Officer (CEO), Martin Khafafa, announced the layoffs in an internal memo dated Friday, April 25, describing the decision as incredibly difficult.
He further explained that the move was necessary to ensure the long-term sustainability of the business.
“Yesterday, we made the incredibly difficult decision to let go of 27 of our colleagues. This was one of the most challenging moments in our journey. These individuals have been part of our team for many years, some for over 20 years,” the memo read in part.
“Please know that this decision was not taken lightly; it was necessary to ensure the sustainability of our business while facing rising operational costs in a harsh economic climate.”
Also Read: Mass Layoffs as CMC Motors Shuts Down in Kenya After 40 Years
Posta Kenya
State-owned Postal Corporation of Kenya (PCK) is one of the companies that revealed plans to lay off at least 600 employees in March this year as part of a radical shake-up of the business, which has been hurt by new technology.
The corporation, popular known as Posta, was also seeking a strategic partner for its courier and financial services division, suggesting that it is exploring potential spin off or sale of shares.
“We are restructuring and have three months’ worth of unpaid salary. By getting a strategic partner for financial and courier services and letting go of 600 extra employees, we are reorganising our company,” Posta CEO, John Tonui told Business Daily.
“A Cabinet memo was created to reengineer our fleet, cut personnel expenses, and liquidate pension liabilities.”
OLA Energy
Oil marketer, Ola Energy, announced in March 12 that it was laying off an undisclosed number of workers in the country, amid difficult times that have forced it into restructuring its operations.
The company also said the restructuring process was aimed at containing its operating costs, resulting in some workers being declared redundant.
“Due to the foregoing challenges, Ola Energy Kenya is finding it difficult to sustain its current fixed costs. It is, therefore, with deep regret, that we need to implement a redundancy programme,” Ola said in a statement on Wednesday.
“The restructuring is meant to support “sales enhancement and operating cost containment.”
The layoffs, the company said, are part of a rescue action plan it started last year, to turn around misfortunes it has had in the market, mainly in high costs and poor sales.
“Through this restructuring, we are committed to reversing the current trends and positioning Ola Energy Kenya for sustainable growth.”
Moi University
At the same time, financially stressed Moi University in April 3 issued a notice of redundancy to formalise plans to lay off staff as part of its cost-cutting measures.
The acting Vice Chancellor Kiplagat Kotut in a memo also attributed the decision to a revenue shortfall that has made it difficult for the institution to sustain operations and meet financial obligations, including staff salaries.
“We hereby give formal notice of an intention to declare redundancy affecting a number of employees who are members of your union,” read the memo in part.
“The details of the employees that shall be affected and the proposed timeline for the redundancy process will be communicated to you in due course.”
Also Read: Job Losses as Radio Africa Fires 27 Employees
Other Companies That Announced Mass Lay Offs
Tala
Digital credit provider Tala, on April 17, announced that it was cutting 28 jobs in its customer operations department, representing less than 3 percent of its total workforce.
The lender explained that customer support queries had declined in recent months, as borrowers increasingly managed their loan repayment timelines in line with their income cycles.
“Twenty-eight positions in the customer operations team were declared redundant. This represents less than 3% of Tala’s workforce, and Tala shall redirect these resources towards market expansion and product development,” the company said in a statement.
KK Security
KK Security Limited now rebranded to GardaWorld in January, announced plans to lay off approximately 1,000 employees across all levels in Kenya due to the ongoing economic challenges.
In an internal memo addressed to staff, Kenya Kazi Services Limited and Kenya Kazi Limited cited rising operational costs, recent legislative changes, and increased minimum wage requirements as key factors driving the redundancy process.
“Due to harsh economic conditions, loss of business from various clients, and operational requirements, the company has decided to undertake a redundancy/restructuring exercise, which will result in the termination of employment due to redundancy,” the memo stated.
Technical University of Kenya
The Technical University of Kenya (TUK) announced plans to lay off at least 559 staff members due to ongoing financial constraints grappling the institution.
TUK stated that in the Financial Year 2025/2026, the management proposes laying off 406 employees at a cost of Ksh 1,119,689,481 (Ksh 1.1B).
Meanwhile, 92 employees will be laid off in the Financial Year 2026/2027 at a cost of Ksh 287,294,223.
In the Financial Year 2027/2028, 80 employees will be laid off at a cost of Ksh 245,365,207.
CMC Motors
Additionally, CMC Motors Group announced its decision to cease all operations in Kenya in January this year, leaving hundreds of employees facing an uncertain future.
Acquired by Dubai-based Al-Futtaim Group in 2014, CMC Motors cited ongoing market challenges — including economic pressures, currency depreciation, and rising operational costs — as reasons for the shock move.
“CMC Motors Group has decided to gradually wind down operations in full compliance with local regulations and distributorship agreements,” said the company in a statement.
“Despite restructuring efforts and a transformation programme initiated in 2023, the prevailing market conditions have not allowed for a viable path forward.”
Follow our WhatsApp Channel and X Account for real-time news updates.
