Skip to content
Government and Policy

Kenya Is Burning: Ruto’s Regime Is Butchering Jobs, Killing Industries, And Betraying the Nation

BY Steve Biko Wafula · April 26, 2025 08:04 am

In the last six months, Kenya has witnessed a silent but brutal economic massacre: mass layoffs across sectors once considered pillars of stability. From manufacturing giants like Tile & Carpet Limited to education institutions like Moi University, businesses are sending workers home in droves. The reasons cited — economic challenges, redundancy, restructuring — mask a deeper and more sinister rot at the heart of the Kenyan economy.

When a country begins losing jobs across manufacturing, mining, fintech, education, and media all at once, it’s not a coincidence. It’s a clear symptom of systemic collapse, brought about by incompetent leadership, punitive tax regimes, pervasive corruption, and a judiciary so compromised that businesses no longer believe they can find justice or protection under the law.

Take Posta Kenya, for example. Once a proud national institution, now reduced to laying off 600 workers. Its collapse is not just due to global digital shifts; it is exacerbated by government mismanagement, lack of innovation, and crony appointments of unqualified executives. State-owned enterprises like Posta have long been cash cows for corrupt politicians, siphoning public funds while bleeding services dry.

Meanwhile, KK Security, one of Kenya’s largest private security companies, has laid off 1,000 workers, citing redundancy. But the real story lies in the economic sabotage created by delayed government payments and skyrocketing operational costs thanks to new, punishing taxes on fuel, insurance, and basic services — policies pushed by a clueless administration obsessed with squeezing citizens dry to fund its luxury lifestyles.

The mining sector has not been spared either. Base Titanium, a key player in Kenya’s extractive industry, cited “depletion of ore,” but industry insiders reveal another story: political interference, corrupt licensing practices, and unending bureaucratic hurdles that discourage long-term investments. Investors are pulling out, and with them, jobs, taxes, and critical foreign exchange earnings.

Manufacturing, often touted as the key to Kenya’s industrial takeoff, has been devastated. Tile & Carpet Limited’s 300 layoffs and BAT Kenya’s 19 job cuts are only the publicly disclosed figures. Industry surveys show that manufacturing is operating at just 63% capacity, down from 75% in 2020. Factories are shutting down because imported goods — often smuggled in or favored by corrupt customs officials — are killing local production.

In the gambling sector, Betsafe has exited the Kenyan market altogether. They laid off 100% of their workforce. It’s easy to blame moral opposition to gambling, but the real culprits are retrogressive, arbitrary taxes that leave businesses unable to turn profits. The Finance Act 2023 introduced a draconian 15% tax on betting stakes, not winnings — an economically illiterate move that drove away even responsible gaming firms.

Read Also: The Government Has Failed To Address The Unemployment Issue

The automobile sector was dealt a fatal blow with CMC Motors, a brand embedded in Kenya’s motoring history, announcing a 100% layoff. Industry analysts cite impossibly high taxes on new cars, endless corruption at the port, and severe forex shortages as the reasons firms like CMC are leaving the Kenyan market. Without cars, there are no dealerships. Without dealerships, there are no mechanics, no service jobs, and no spare parts businesses.

NGOs, traditionally a source of employment and vital services, have also been crippled. AMREF Health Africa has laid off over 400 staff, blaming disruptions in USAID funding. But here too, Kenya’s international reputation has crumbled under the current regime. Western donors are quietly withdrawing funding, citing corruption scandals, misuse of grants, and a judiciary that refuses to punish embezzlers.

Energy firm OLA Energy’s layoffs are yet another warning sign. Energy markets demand stability, but Kenya’s energy sector is mired in opaque deals, unpaid government bills to suppliers, and tax uncertainty. Investors simply cannot plan long-term operations here anymore.

Even Kenya’s tech darling sector is bleeding. Tala, a mobile lending fintech once hailed as a symbol of Silicon Savannah’s promise, cut 28 employees. Rising loan defaults, a contracting middle class, and new digital taxes have squeezed what was once a thriving innovation hub into near-irrelevance.

Moi University, once a prestigious institution of learning, has laid off an undisclosed number of staff. Public universities are on life support. Chronic underfunding, looted capitation grants, and politicized management have made higher education in Kenya a sinking ship. The irony of a country “building for the future” while firing lecturers should not be lost on anyone.

Media, too, is crumbling under the weight of authoritarian repression and poor advertising markets. Radio Africa Group, an influential media house, has laid off 27 employees. With the government withholding millions in advertising payments unless favorable coverage is given, media houses are dying, and with them, press freedom.

This carnage is not accidental. It is the direct result of a regime that has looted with impunity, imposed taxes without regard for economic consequences, and fostered a business environment so toxic that even the bravest investors are packing up.

The Finance Act 2023 introduced over 40 new taxes and levies, from fuel VAT increases to digital content taxes. Kenyans are now among the most taxed people in Africa, yet their living standards continue to plummet. The World Bank forecasts Kenya’s GDP growth for 2024 at just 5%, below the African average — a damning indictment of policy failure.

Corruption has metastasized under this government. Transparency International’s 2024 Corruption Perceptions Index ranks Kenya at 128 out of 180, sliding four positions from 2022. Billions meant for healthcare, education, and infrastructure have been stolen, yet the courts release suspects on laughable bail terms.

Judicial rot has become so bad that even the Chief Justice was recently implicated in scandals. Investors know that contracts are worthless in a country where justice is for sale. Businesses need the rule of law, not roulette, and in Kenya today, the casino is rigged.

Delayed government payments have wrecked private sector liquidity. Contractors owed billions by the state have defaulted on their bank loans. Banks, wary of risky lending, have tightened credit, killing off SMEs that drive over 70% of Kenya’s employment.

Every layoff has a ripple effect. A worker laid off from KK Security doesn’t just lose a paycheck; they pull their kids out of school, cancel health insurance, and stop shopping at the market. Every job loss collapses five other livelihoods in Kenya’s fragile informal economy.

The manufacturing job cuts expose another grim truth: Kenya imports what it should be making. From textiles to steel to basic electronics, the country has become a supermarket for Chinese, Indian, and Turkish goods. Local industries cannot compete because policymakers have turned Kenya into an open dumping ground.

The mining sector layoffs signal a death knell for resource nationalism. Instead of building a minerals processing industry, successive governments have signed away Kenya’s natural wealth in murky deals that enrich a few and impoverish millions.

In fintech, the death of startups like Tala is a devastating blow to Kenya’s ambition of becoming Africa’s Silicon Valley. Young, brilliant innovators are increasingly taking their talents to Dubai, Kigali, or even Lagos — anywhere but Nairobi.

Education sector layoffs are a tragedy. When universities shrink, the nation’s brain shrinks. Kenya’s declining education quality will haunt it for decades, as under-skilled graduates flood an economy already unable to absorb its youth bulge.

The exit of key brands like CMC Motors, Betsafe, and international funders from AMREF signals something more dangerous: loss of investor confidence. Without investment, there is no growth, no jobs, no future.

Kenya’s current regime has betrayed the social contract. They were elected on promises of jobs, affordable living, and empowerment. What they have delivered instead is hardship, hunger, and hopelessness.

Read Also: Kenya Faces A Ticking Time Bomb As Youth Unemployment Soars Threatening Fatal Civil Unrest

The human cost of these layoffs is invisible on balance sheets but brutal on the ground. Families are splitting apart under financial strain. Youth are falling into crime and depression. Children dropping out of school.

Kenya’s middle class — the backbone of any economy — is disappearing. With no disposable income, demand for goods and services collapses, sending more businesses into bankruptcy.

Political leaders, meanwhile, remain insulated, living lavishly on state largesse, building private homes, flying private jets, attending international conferences to beg for money they intend to steal.

The public anger is simmering. Protests have already erupted in parts of the country, and if history teaches us anything, it is that economic despair eventually breeds political revolution.

The international community is quietly preparing for a Kenya that may descend into deeper unrest. Donors are scaling down programs. Multinational firms are reconsidering expansion plans. Diaspora remittances, Kenya’s economic lifeline, are expected to fall.

The government’s solution so far? More taxes. More borrowing. More lies. They are fueling a fire they can no longer control.

For three years, Kenyans have been patient. They have paid more for less. They have watched as promises turned into plunder. But patience is running out.

The failure of this administration is total. The layoffs are just the most visible symptom. Behind them lies a hollowed-out economy, a bleeding society, and a shattered dream.

Kenya must demand change. Not tomorrow. Now.

Read Also: Kenya’s Unemployment Crisis: A Nation of Dreams Trapped In Stagnant Wages And Disappearing Opportunities

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

Trending Stories
Related Articles
Explore Soko Directory
Soko Directory Archives