The Silent Profit Killer: How Mental Health is Draining Your Business Without You Knowing

In today's fast-paced corporate world, mental health is not just another HR topic—it has become a key driver of business success. Companies that fail to prioritize the mental well-being of their employees are not only risking productivity but also their financial sustainability.

Let’s start with a hard truth: mental health is costing businesses. According to a 2022 HR study, 25% of Kenyan employees are grappling with work-related stress, anxiety, or depression. Statistically speaking, one in four of your employees could be dealing with serious mental health challenges right now. With a workforce of 19.1 million people across formal and informal sectors in Kenya, that means nearly 4.8 million working Kenyans are facing mental health struggles, directly impacting businesses through absenteeism, lost productivity, and low morale. Globally, untreated mental health issues cost an astounding $101 trillion USD each year.

But it doesn’t have to be this way. Companies that invest in mental health programs see massive returns—up to 400% in productivity gains, reduced absenteeism, and increased employee morale, according to the World Health Organization (WHO). So, why aren’t all companies on board?

Safaricom: Leading by Example

Take Safaricom, Kenya’s telecommunications giant, as a success story. By integrating mental health support into their corporate culture, they have seen a 20% drop in absenteeism related to mental health issues. Employees feel valued, resulting in higher productivity, fewer sick days, and a more cohesive team. Safaricom is not just improving employee well-being; they are making a strategic investment in their bottom line.

The impact of addressing mental health is tangible, and Safaricom has proven that it goes beyond “feel-good” policies—it can become a cornerstone of corporate success.

The Human Cost: A Tragic Case That Shook Kenya

While companies like Safaricom are setting a positive example, the consequences of ignoring mental health are grave, as illustrated by the tragic death of Desree Moraa in 2024. The 26-year-old intern doctor took her own life, citing long working hours, toxic workplace culture, and overwhelming mental strain as her reasons. Desree’s case mirrors the experiences of countless employees across industries who are crushed by poor working conditions, hostile environments, and inadequate mental health support.

Desree’s story is a heartbreaking reminder that mental health crises can escalate to fatal outcomes if left unaddressed. Her case is far from isolated. It paints a grim picture of the state of employee well-being not just in healthcare but across various sectors in Kenya. Overwork, poor management, and toxic culture are pushing employees to the brink, leading to burnout, depression, and in some cases, death.

Why Mental Health Is a Business Priority

For business leaders who may still see mental health as a “soft” issue, let’s talk about the hard numbers. According to Statista, 19.1 million people were employed in Kenya in 2022. If one in four workers is struggling with mental health, this equates to nearly 5 million employees who could be underperforming due to anxiety or depression.

An employee suffering from depression loses an average of 5 hours and 36 minutes of work per week. Imagine that loss multiplied across entire teams—it’s a productivity vacuum that few businesses can afford. And it doesn’t stop there. The cost of replacing an employee due to burnout or resignation can be up to 50-60% of their annual salary, not to mention the indirect costs like team disruption and the time required to recruit and train new staff.

The True Cost of Ignoring Mental Health

Globally, companies lose $101 trillion USD annually due to untreated mental health issues, primarily driven by absenteeism and presenteeism—when employees are physically at work but not mentally present. Kenyan businesses face the same risk. As profit margins shrink, inefficiency driven by poor mental health becomes more evident.

And it’s not just about productivity. Companies with poor mental health practices are likely to experience higher turnover rates, leading to even more significant financial loss. Employee replacement costs are just the beginning; you also lose institutional knowledge, disrupt team dynamics, and create a toxic work culture.

Building a Culture of Well-Being

The benefits of a mentally healthy workforce extend far beyond cost savings. Companies that prioritize employee well-being consistently outperform their competitors. According to a study by Gallup, businesses with high employee engagement see 21% higher profitability compared to their peers.

A strong workplace culture that supports mental health does three key things:

1. Increases engagement: Employees who feel supported are more engaged and, therefore, more productive.
2. Reduces turnover: Engaged employees are far less likely to leave. Disengaged employees in the U.S. alone cost companies $450-550 billion annually in lost productivity. Kenyan businesses are no different.
3. Boosts reputation: Modern employees, especially millennials and Gen Z, value work-life balance and mental health. Companies that prioritize these aspects are more likely to attract and retain top talent. In turn, a positive reputation boosts consumer trust and brand loyalty, driving profits upward.

A Call to Action: Why Businesses Need to Act Now

For most organizations, the conversation around mental health is long overdue. 75% of employees globally say they want more mental health support from their employers, yet many businesses still see it as an afterthought. If you’re not investing in mental health resources, you’re falling behind—and worse, you’re jeopardizing the long-term sustainability of your business.

So, what can you do to prioritize mental health?

Practical Steps for Corporate Kenya

1. Launch a mental health awareness campaign: Start by opening the conversation. Show employees that mental health is a priority for your business.
2. Create Employee Assistance Programs (EAPs): Offer confidential counseling and support services.
3. Implement flexible work policies: Remote work, flexible hours, and mental health days can significantly reduce stress.
4. Train leadership: Equip managers to recognize the signs of burnout and provide the necessary support.

The Kenyan Government’s Role

While companies must lead by example, the Kenyan government also has a critical role to play in addressing the national mental health crisis. Policies exist, but implementation is weak. Increasing mental health funding, reducing stigma, and providing support to high-stress professions like healthcare workers are essential steps that the government must take to prevent more tragedies like Desree Moraa’s.

Final Thoughts: Mental Health Is Not Optional

The bottom line is clear: Healthy employees make for healthy businesses. By fostering a workplace culture that prioritizes mental well-being, you’re not just helping your employees—you’re securing your company’s future. The cost of ignoring mental health is too high, but the rewards for addressing it are limitless.

With love, light and endless possibility,

Najda Begum Khan PhD. SHRM, CPM - The disruptive catalyst

#HeyNajda #CultureWise #MentalHealth #Health #HRInsights #WorkplaceCulture #EmployeeEngagement #OfficePolicies #LeadershipMatters #WomenInBusiness #HRProfessionals #CareerTips #CorporateResponsibility

References

• World Health Organization (WHO) report on workplace mental health statistics
• Harvard Business Review article on mental health days and productivity
• Case study from Safaricom Corporate Well-being Reports and local HR studies in Kenya
• Statista data on employment in Kenya and mental health trends

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