Kenya's economy grows as job losses soar

Thousands of families stare at bleak economic times following a wave of employee layoffs announced by leading companies in the past few weeks.

The job losses in commercial banks, breweries and cement manufacturing sectors sharply contrast the lauded economic growth painted by official data and present policymakers with the need to rethink a working solution for a country whose economic growth contradicts its job market.

In the past one month, at least six companies have signalled staff layoffs, which come with economic ripple effects given the number of dependents that rely on the close to 2,000 people set to lose their jobs.

East African Portland Cement Company (EAPCC), Telkom Kenya, Stanbic Bank of Kenya and East African Breweries Limited (EABL) have already notified employees of the looming layoffs, citing the need to trim their payrolls. Two other banks are said to have issued similar notices this week.

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The difficult economic times cited by the affected companies is in sharp contrast to the improving business environment that has seen Kenya move several steps in the Ease of Doing Business ranking.

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