Nairobi, April 5 -- Kenyan firms have slowed down hiring of workers and frozen pay raises, citing reduced demand for goods and services amidst biting cash flow problems in a tough economy.

Findings of Stanbic Bank Kenya's Purchasing Managers Index (PMI) suggest companies in March grew workforce numbers at the slowest pace since the beginning of the year.

The slowdown reversed a course that had started taking shape, with February hiring growing the fastest in 13 months.

Companies had relied on growing orders to hire more workers [largely casuals] and had raised budgets for marketing campaigns in a bid to stimulate demand further on the back of easing inflationary pressure.

Demand for goods and services, however, dropped in March, promp...