Kenyan workers face increased job displacement risks in 2026 due to AI integration, skills mismatch, and economic pressures. A recent survey revealed nearly 6 in 10 companies plan layoffs, with 15% of Kenyans already fearing retrenchment.

• A December 2025 Infotrak poll indicated 15% of Kenyans are concerned about retrenchment in 2026.
• A survey of business leaders shows nearly 60% of companies intend to implement layoffs in 2026, citing economic pressure and AI adoption.
• Key factors include AI integration leading to workforce optimization, a decline in demand for roles such as clerical and secretarial work, and a skills mismatch where the half-life of technical skills is now 5 years.
• Local pressures, including taxation and compliance, are forcing SMEs to automate, while soaring business expenses and potential climate threats (e.g., a 2026 drought) are also impacting recruitment and driving cost-saving measures.