Wednesday, April 24, 2024

Kenya: FKE Says 70,000 Formal Jobs Lost Since October 2022

Nairobi — Federation of Kenya Employers (FKE) says 70,000 employees in the formal private sector have lost their jobs since October 2022.

FKE Executive Director Jacqueline Mugo revealed the staggering job losses even while reiterating the federation’s earlier warning that the Finance Act of 2023 would lead to more job losses.

The federation said the Finance Act of 2023 has adversely affected many businesses’ cash flows, which has an effect on payrolls and rendered the cost of doing business unsustainable.

“Between October 2022 and November 2023, we have lost 3 per cent (70,000) of the jobs in the formal private sector and 40 per cent of employers have reported that they are planning to reduce the number of employees to meet the increasing costs of operating in Kenya,” FKE said in a statement.

Mugo promised to launch a full survey report on Trends in December 2023.

The Federation noted that despite the huge loss, 40 per cent of businesses in the sector were still considering downsizing to address the rapid rise in operating costs in the country.

FKE noted the country’s job situation remains unstable because of the COVID-19 pandemic’s aftermath, as there has been no clear road to recovery.

Trapped by a fragile currency and a buttered economy, the FKE has now criticized the government policies, pointing out their detrimental effects on import-dependent enterprises.

The Federation observed that the Kenya shilling lost 21 per cent of its value in the year-long ending November 22, 2023.