Even after massive job cuts throughout the year, most firms are still staring at losses as revenues fall. This is mainly on the back of reduced business activities in an electioneering year, which were aggravated by a court petition that led to a repeat presidential election in October.

Staff costs often are the easiest target for companies in a struggling economy, explaining why many firms have laid off their workers this year.

On Friday, cement maker Bamburi joined BOC Gases and Standard Chartered Bank in issuing profit warnings while Consolidated Bank, Sidian Bank, Family Bank, Athi River Mining and East Africa Portland Cement slipped into the red, according to their financial results for the nine months to September this year.

Mortgage lender Housing Finance Group’s net profit also fell 81 per cent while Centum’s was down 21 per cent as I&M Bank’s earnings dropped 22 per cent in the third quarter.

Several businesses such as Nakumatt Supermarkets have also taken a hit from the credit squeeze as lenders refrain from extending loans in the wake of the rate cap law limiting the maximum they can charge on loans at 14 per cent.