Kenya employers say no more job cuts

Employers have assured that there will be no more job losses as the year ends due to the global financial crisis.

The Federation of Kenya Employers have said that the country was now cushioned from the adverse effects of the crisis meaning that firms were unlikely to lay off due to a bad economy.

The employers however noted that the country’s economy was not likely to register an economic growth of more than 3.5 per cent this year.

They also expressed concern over corruption in the country and the effects it was having in the business sector and development.

FKE chairman Patrick Obath, said that most industries were doing better than mid this year when the organisation reported that up to 10,000 Kenyans had lost their jobs due to recession.

He also noted that things were “looking up” for the horticultural sector, which was mainly affected by the crisis as exports stabilised.

“We are therefore not likely to see more people laid off as a matter of the financial crisis. The job losses that may be registered may just be as a result of the normal issues in work places,” said Mr Obath.

He added that various companies had reported better financial records while noting that those that have recorded loss have not as huge as expected.

He was speaking at the federation’s headquarters in Nairobi during a press conference.

He was accompanied by various board members including the CEO Jackline Mugo.

The employers noted that there were challenges that must be tackled for the country to register full recovery in the coming year.

These, they said, include dealing with the water, energy and food crises that have hit the country over the year.

They expressed optimism that with the expected rains next month, operations were likely to ease up in the different sectors of the economy.

They also cautioned that they country may be caught unprepared if it does not put in place mechanisms to take advantage of the rains.

“The rains are welcome but this comes as we are not ready. We still cannot harvest water in this country and we should be doing more to ensure that we have institutions that look ahead,” said Mr Obath.