After a challenging 2025 marked by massive layoffs, salary cuts, and shrinking opportunities, Kenyans can look forward to a brighter 2026.
Macroeconomic indicators signal stronger growth, with the economy projected to expand by 5.5 per cent, up from last year’s 4.9–5.2 per cent.
Private sector leaders say a stable operating environment, coupled with government investments in infrastructure, could spur hiring across multiple industries.
Employers emphasize that reducing taxes and ensuring predictable policies are crucial to safeguarding jobs. Jacqueline Mugo, CEO of the Federation of Kenya Employers (FKE), said:
“Supporting enterprises today is key to protecting employment tomorrow.”
Last year, over 100,000 jobs were lost, including 66,000 following the expiry of the African Growth and Opportunity Act (AGOA). Despite this, government data indicates more than two million jobs were created in 2025.
Spokesperson Isaac Mwaura highlighted the government’s focus on agriculture, industry, tourism, small businesses, and international employment opportunities as drivers of growth.
The World Bank also predicts Kenya could create at least 400,000 jobs annually if reforms in key sectors are implemented. Measures such as leveling the playing field between private and state-owned enterprises, lowering trade barriers, and removing regulatory bottlenecks in electricity, telecommunications, and fertilizer sectors are expected to boost GDP and employment.
Private sector sentiment mirrors this optimism. Surveys by the Central Bank of Kenya in November 2025 show businesses expect a rebound in hiring, especially in agriculture, manufacturing, construction, trade, tourism, and ICT.
Cheaper credit, stable inflation, and resilient agricultural output are cited as key enablers. Kepsa CEO Carole Kariuki said:
“Kenya has a real opportunity to attract investors as global trade shifts.”
Infrastructure projects remain a major source of jobs. The government’s ongoing works—including roads, ports, rail extensions, dams, and stadium upgrades—have already created over 330,000 direct and indirect jobs since 2022.
Projects such as the Rironi–Mau Summit highway, SGR extension to Kisumu and Malaba, Talanta Sports City, and the 10,000MW energy expansion are expected to further stimulate industrialisation and position Kenya as a regional logistics hub.
Economists predict that with business expansion, pro-competitive reforms, and strategic government investment, 2026 could mark a significant turnaround in employment, offering hope to millions of Kenyans who endured economic hardships last year.
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