Hotels, farms drive new hiring as other sectors struggle- CBK
According to the July Market Perceptions Survey, 20 percent of agricultural firms expressed strong plans to add more workers this year, up from 16 percent in May.
Hotels and agricultural firms have maintained a steady pace in hiring this year, defying job cuts in other industries, as they bank on rising tourist arrivals and stronger agricultural output supported by good rains.
A new Central Bank of Kenya (CBK) survey shows that the two sectors stand out as the most optimistic about employment prospects in 2025 compared to last year.
According to the July Market Perceptions Survey, 20 percent of agricultural firms expressed strong plans to add more workers this year, up from 16 percent in May.
At least 11 percent of hotels also indicated that they expect to expand their workforce compared to 2024 levels. The CBK based its findings on responses from 138 private companies operating outside the banking industry.
“Non-bank players reported a slowdown in hiring due to delayed payments from the government, increased operational costs, taxes, and levies, and opportunities to leverage on ICT to reduce manual operations,” the survey noted.
While the proportion of hotels with strong hiring intentions dropped from 17 percent in May, the sector remains among the very few outside agriculture showing optimism in workforce expansion.
Hotels are riding on the recovery of tourism, which has received a boost after the government removed visa requirements for international visitors.
Data from the Tourism Ministry shows that between January and May, Kenya received 922,961 international arrivals, representing a 2.3 percent increase from the same period last year.
At the same time, Kenya Revenue Authority reports indicate that coffee exports rose by 63 percent to 32,290 tonnes, while exports of flowers, fruits, and vegetables grew from 99,325 tonnes to 138,193 tonnes.
The improved performance has translated into higher productivity in both agriculture and hospitality, pushing firms to expand their workforce.
Other sectors, however, remain under pressure. Transport, for example, recorded no company with hiring plans this year, a sharp reversal from May when three-quarters of firms in the sector had indicated readiness to employ.
