CBK survey: Kenyan firms expect little hiring in 2026 as AI and automation reshape jobs

Kenya's private sector does not anticipate a significant increase in hiring for 2026, as companies plan to maintain stable employment levels through the use of artificial intelligence (AI), digitisation, and automation. The Central Bank of Kenya's (CBK) Market Perceptions Survey for July 2026 reveals that firms expect employment levels to remain largely unchanged compared to 2025.

Instead, recruitment efforts will focus on replacing employees who leave, converting contract positions to permanent roles, and hiring workers with specialized skills. The survey suggests that while Kenyan companies will continue to hire, large-scale workforce expansion is unlikely this year.

The shift in hiring priorities is driven by companies' adoption of technology to boost productivity and control costs. Respondents anticipate that businesses will primarily focus on staff replacement, converting selected contract roles to permanent positions, and acquiring specialized expertise, particularly in business development and digital technologies.

This change in hiring strategies could lead to a more competitive employment environment for young Kenyans entering the job market. Opportunities are likely to be concentrated in areas where technology cannot easily replace skills, such as business development and digital technologies.

However, the survey does not suggest that AI will replace all human workers. Instead, businesses will use technology to improve efficiency, making workers more selective about the skills they require. For job seekers, the implication is clear: digital skills and the ability to work effectively with AI could become crucial advantages in Kenya's changing labour market.

The employment outlook is further shaped by cautious business sentiment, with firms citing cost pressures, digital transformation, automation, and the need to improve efficiency as factors influencing employment decisions.