Kenyan economy: The Kenyan economy is in a crisis. Over 600 companies have so far sent employees home. At the same time, a report that appeared in the Daily Nation on Monday shows that at least 33 jobs on average have been lost in every sector.
“At least 60 FKE members who are modern sector employers have declared Covid-19 triggered redundancies,” the report said.
The report further said that according to Jacqueline Mugo, the Federation of Kenyan Employers executive director, the 1.7million jobs lost estimate by the Kenya National Bureau of Statistics (KNBS) is a conservative figure.
“The reality however is that the worst is yet to come, as workers continue to grapple with the impact of the pandemic, especially the consequences of the abrupt shutting down of economic activities,” Mugo was quoted said. She added that last year alone, FKE companies declared 7,000 employees redundant.
“In addition, we are seeing a spike in the trade disputes reported in the Industrial Court and the Ministry of Labour and Social Protection arising from the measures employers have taken to mitigate from the impact of the pandemic on businesses,” she was further quoted. “To date, 60 of our member companies have declared redundancies because of poor business performance occasioned by the effects of Covid-19. For instance, reduced demand for goods and services.” Kenyan economy.