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Originally published by The Standard Business
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August 21, 2025
16h ago

Job loss: How high taxes, weak demand are pushing firms to the brink

Job loss: How high taxes, weak demand are pushing firms to the brink

Kenyan businesses are being squeezed by soaring taxes and muted consumer demand, forcing them to slash costs and automate operations to survive, a CBK survey shows. ..

✨ Key Highlights

Kenyan businesses are struggling with high taxes and weak consumer demand, leading them to prioritize cost-cutting and automation for survival, according to a recent Central Bank of Kenya (CBK) survey.

  • A significant 23 percent of firms identified "managing costs/risks" as their primary survival tactic.
  • The July 2025 CBK CEOs Survey polled over 1,000 executives.
  • The Stanbic Purchasing Managers' Index (PMI) dipped below the critical 50-point mark to 49.6 in May, signaling contraction.
  • 21 percent of respondents cited high cost of doing business, 17 percent reduced consumer demand, and 15 percent increased taxation as key constraints.

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