Kenya Employers Warn of Looming Job Cuts Which Atwoli Dismisses

Unemployment in Kenya
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In its second term, the government promised to create 1.3 million jobs. Statistics by Kenya Bureau of Statistics in a 2018 economic survey revealed that only 900,000 jobs were created with the informal sector contributing a whole 83% as unemployment sagged at 85% for the majority of the youths.

But the trajectory is about to worsen if the warnings issued by the Federation of Kenyan Employers come to pass. According to the federation, there has been intense pressure on the key sectors that contribute to the Gross Domestic Product of the country as white collar jobs dwindle.

That with the rising cost of doing business in the country, these sectors will not thrive and the ripple effect will hit had on the employees, warning workers to brace themselves for massive retrenchment.

” The financial sector has been under stress. agriculture and manufacturing sector has seen a number of exits and now with the ban on logging has seen a number of employees exit. Opportunities in formal employment have withered. Workers should now brace for massive job cuts across the horticulture, manufacturing and timber sectors as the cost of doing business in the country continues to rise,” warned Jacqueline Mugo, Executive Director Federation Of Kenyan Employers.

But KOTU Boss Francs Atwoli would have none of that. Slamming FKE remarks, he said that the federation is riding on the fact that Labour day is near, threatening workers while undermining the hard work of Kenyans who toil hard to make ends meet.

” Because they know Labor day is around the corner, they want to threaten us by now telling us they will declare workers redundancy,  so they cannot apportion the blame on workers who toil from six to six, “KOTU Chairman Francis Atwoli

An expert advised that caution is prudent, and if the prevailing business condition is not addressed properly there could be a severe set back in the labor market.

” If the business sector continues in that trajectory, the case of unemployment will worsen. I advise that caution is prudent. Kwame Owino, CEO Institute of Economic Affairs

Kwame also mentioned that the informal sector is doing far much better meant that structurally there was something wrong. The labor flooding the farming industry could be moved into the manufacturing sector creating more employment opportunities.

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