Kenyan firms expect to maintain their current hiring levels in 2026, with banks and selected non-bank sectors showing moderate optimism about taking on new employees, according to the Central Bank of Kenya (CBK).

According to the CBK’s July 2026 Market Perceptions Survey, firms were asked whether they expected to increase new hires in 2026 compared with 2025.

Respondents reported largely unchanged hiring expectations compared with the previous year, although banks indicated greater interest in recruiting new talent to support business expansion.

The banking sector said new recruitment would mainly be driven by the need to support business growth, attract fresh talent and diversify skills within institutions.

“Respondents indicated largely unchanged hiring expectations for 2026 relative to 2025, with banks expressing moderate optimism for new recruitments primarily to support business growth, attract new talent and diversify skills,” read part of the report.

Factors Affecting Employment

The survey further indicates that agriculture, Transport and logistics, manufacturing and construction firms anticipate limited improvement in hiring, while the hospitality sector expects stronger growth in recruitment.

CBK notes that employment expectations in the non-bank private sector will largely be driven by business expansion, attracting new talent, diversifying skills and replacing employees who leave.

Among non-bank firms, 20 percent of respondents cited business expansion as a key factor influencing their hiring expectations in 2026.

17 percent said they expect to replace employees who resign, while another 17 percent cited improving employee morale.

11 percent of respondents said they plan to attract new talent, while 9 percent said their policy will be driven by the need to diversify skills and replace employees through natural attrition, including retirement, relocation, or death.

6 percent of respondents said their policy will aim to reduce costs. Other factors mentioned include replacing employees affected by layoffs (3 percent), improving efficiency (3 percent), increasing profits by reducing overheads (3 percent), and digital transformation, artificial intelligence, and automation.

CBK Survey Shows What Kenyan Firms Expect From Economy

Kenyan banks and non-bank private sector firms remain optimistic about the country’s economic prospects over the next 12 months, citing improving macroeconomic conditions, stronger consumer demand and signs of recovery across key sectors.

Those surveyed attributed their optimism to a stable exchange rate, lower interest rates, improved foreign exchange reserves and supportive government policies, which they said could encourage investment and boost demand.

Businesses also pointed to resilience in the services sector, particularly tourism and hospitality, alongside rising consumer spending, recovering manufacturing activity and improved growth in private sector credit.

However, firms identified several risks that could undermine the outlook, including conflicts in the Middle East and volatility in global energy markets.

They warned that disruptions in global energy markets could increase fuel, transport and production costs while affecting international trade.

Respondents also cited high debt-servicing costs and increased government domestic borrowing as concerns, warning that heavier government borrowing could crowd out private-sector investment.

Businesses further raised concerns over elevated inflation and fuel prices, which could continue to push up the cost of living and weaken household purchasing power.

High operating costs and unemployment were also identified as challenges, while the tourism and hospitality sectors remain vulnerable to external shocks that could affect business competitiveness and economic confidence.

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CBK Survey Shows Hiring to Remain Stable in 2026 Compared to 2025
CBK Governor Kamau Thugge. PHOTO/Parliament