More companies outside the banking sector are hiring additional short-term employees to handle demand pressures during Christmas festivities, a new Central Bank of Kenya (CBK) survey has revealed, turning the tide on a wave of layoffs that has been the hallmark of 2024.
The survey, conducted in November, found that at least 45 percent of companies in the non-banking sector said they expected to increase their employees before the end of the year.
This marks an increase from September, when 38 percent of respondents said they planned to increase their workforce.
“In the November survey, 62 percent of banks expected to hire more employees in 2024 compared with those they had in 2023, while only 45 percent of non-banks expected to increase their employees in 2024,” the CBK’s latest Market Perceptions Survey said.
“Banks largely expect to hire more in 2024 to support continued branch expansion, growth in business, and launch of new products as well as focused recruitment to fill vacant roles and areas critical to business operations. Similarly, non-bank players expect to hire additional staff, particularly contract employees during the festive season,” it added.
The growth in the number of non-bank sector companies planning to hire more workers before the end of the year is even as banks recorded a drop in those planning to add more workers, from 76 percent in September.
Throughout 2024, many companies have been reporting more plans to lay off staff as they complained of weak demand and the high cost of doing business, a trend that now appears to been temporarily halted by demand brought about by the festive season.
At least 217 chief executives and other senior officials from various sectors responded to the central bank survey. While the CBK did not break down the survey based on sectors, it is expected that the transport and tourism sectors (hospitality and accommodation) will record the highest activity during the festivities.
There have already been reports of Kenyans booking vehicles ahead of travelling upcountry for the Christmas and New Year festivities, even as families planning holidays to the coast and other tourist attraction sites rise.
These preparations have spurred demand for many businesses, which have had to employ more people, just weeks after companies were laying off due to bad business.
In September, the CBK reported that 42 percent of companies had fired casual employees, 31 percent dismissed contract staff and 25 percent had laid off permanent workers.
“Banks have largely retained the numbers of casual employees they had in 2023 whereas non-banks have significantly reduced the numbers of casual employees. The survey findings, therefore, show that non-banks have employed less and laid off more in 2024 compared with banks,” the September survey stated.
