David Ndii Says Mass Layoffs in Kenyan Companies Impact Mainly the Privileged Class.

In a frank response to Kenya’s current economic hurdles, President William Ruto's Senior Economic Advisor, David Ndii, has shed light on why major Kenyan companies are laying off workers en masse. Speaking on X (formerly Twitter), Ndii addressed a concerned Kenyan who questioned the ongoing economic difficulties faced by local manufacturers and the escalating rate of business insolvencies. His response, while direct, sparked a heated reaction from the public.

David Ndii Says Mass Layoffs in Kenyan Companies Impact Mainly the Privileged Class.

Ndii's comments came amid news that security company G4S and home improvement retailer Tile & Carpet have announced layoffs, joining a growing list of companies struggling to keep up with Kenya’s high cost of living and unfavorable business climate. According to Ndii, the primary challenge for these businesses lies in their narrow market focus. He pointed out that companies heavily reliant on a "small elite market" would continue to face rough times.

“What do all these companies have in common?” Ndii questioned. “They all serve a small elite market... If your customer base is suburban lifestyle private security, home improvement, upmarket FMCG—things will get worse before they get better.”

While Ndii’s analysis points to an economic imbalance where businesses targeting high-income earners are feeling the pinch, his candid remarks were met with backlash from Kenyans who felt they overlooked the broader economic impact. Kenyans on social media voiced their frustration, accusing government officials of being out of touch with the struggles of the ordinary citizen.

One user retorted, “Mr. Ndii, your dreams that the economic model you’re pushing down Kenyans' throats is working are textbook examples of delusions of grandeur! Please drop it! It won’t work.” Another user questioned, “Are workers in these companies elite? Perhaps not, and class isn’t the issue.”

Others expressed concern over the potential ripple effect, warning that job losses in one sector inevitably hurt others. “You understand that one person’s spending is another’s income. This is not it,” noted a concerned user, emphasizing the trickle-down impact that layoffs can have on Kenya’s economy.

These public reactions reflect a growing sentiment of disillusionment with the government’s economic approach, especially given the recent notice to hire consultants to support the Bottom-Up Economic Transformation Agenda (BETA). Critics question why the government, two years into its administration, needs new consultants if the current economic strategies were effective.

As layoffs increase and more Kenyans find themselves grappling with an increasingly expensive and challenging economy, questions remain about whether the government’s Bottom-Up approach will be effective in stabilizing the economy. Ndii’s remarks may have provided insight into the reasons behind some corporate struggles, but they have also underscored a disconnect between policy architects and the on-the-ground reality for everyday Kenyans.

The unfolding developments leave Kenyans with mixed feelings. Will the government's economic transformation agenda succeed in fostering a more inclusive market environment, or will it continue to favor a niche segment, leaving the majority on the sidelines?