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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.