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In Kenya, the festive season has traditionally been marked by elaborate end-of-year parties, a time for companies to appreciate their staff and clients while reflecting on the year’s achievements.

However, tough economic times have made such celebrations a luxury most businesses can no longer afford. The high cost of doing business, compounded by a tax-heavy regime under the Kenya Kwanza administration, has forced companies to tighten their belts, cutting out non-essential activities like corporate parties.

The ripple effects of these economic challenges are palpable, with inflation hitting 3 per cent in December 2024, according to the Kenya National Bureau of Statistics (KNBS). Rising food prices, transport costs, and skyrocketing operational expenses have drained both corporate and household budgets. As a result, many businesses have opted to forgo end-of-year celebrations, marking one of Kenya’s bleakest festive seasons in recent memory.

For communication consultant and event organiser Annette Kogai, the shift is striking. “None of my clients held end-of-year parties this year,” she said. “Even the company I work for only managed a modest internal event. The economic situation has made it nearly impossible for businesses to allocate funds for such activities, especially with the reduced circulation of money in the system.”

Her sentiments are echoed across various industries. Budget constraints have forced many organizations to either cancel or drastically downscale their usual festivities. Some companies opted for small, internal gatherings, but even these were few and far between.

Joan Wangari, founder of Brainy Bunch, a firm specializing in scrabble training, chess, and coding, explained the financial strain businesses face. “When you compare operational costs with the funds required for a party, it becomes clear that every coin must be saved for essential bills. It’s not that we don’t value such functions, but limited resources make them impractical.”

Wangari, who has worked for various organizations over the years, noted a dramatic shift in corporate culture. “Previously, many companies held end-of-year parties almost as a tradition. They even gave gifts and merchandise. Now, the focus is on the value an individual brings to the company before any extras are considered. Branding, for instance, has become prohibitively expensive, and businesses are no longer willing to absorb these costs.”

For small business owners like Patrick Matiri, the economic downturn has been especially punishing. “This year has been one of the toughest for businesses,” he lamented. “Some of my employees even went on holiday without pay. Previous years were challenging but manageable. This year has forced us to completely rethink our strategies.”

The downturn has also hit the creative economy hard, particularly photographers, who traditionally rely on end-of-year events for a significant portion of their income. Andrew Kilonzi, a professional photographer, shared his disappointment. “For the first time, none of my clients invited me to cover their end-of-year events. This is unprecedented and highlights how much the economy has changed.”

Similarly, Anthony Ngugi, another Nairobi-based photographer, reported a sharp decline in bookings. “The number of events I covered this year has been significantly lower. Even when clients do manage to hold events, they negotiate very low prices. I understand it’s because of the high cost of living, but it makes it difficult to sustain my business.”

The economic challenges have not only affected corporate celebrations but also triggered widespread opposition to the government’s tax policies. In November, businesses and lobby groups vocally opposed new tax proposals by the National Treasury, warning that the measures could force many companies out of business. While they remain hopeful that their concerns will be addressed in the coming year, the uncertainty continues to weigh heavily on the private sector.

Kogai, Wangari, and others in the business community agree that the festive season has lost its luster, a reflection of the harsh economic realities gripping the nation. The once-vibrant end-of-year parties, filled with joy and camaraderie, have been replaced by somber reflections on financial survival. As businesses brace for another challenging year, the hope for a more favorable economic environment remains faint but persistent.

Kenya’s current economic landscape has reshaped not only how companies operate but also how they celebrate. End-of-year parties, once a staple of corporate culture, are now a casualty of the country’s high cost of living and doing business. For many, the focus has shifted to simply staying afloat, leaving little room for festivities.