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.

He noted that unless the country deals with the challenges of food, water and energy shortages, employers would face a huge task in maintaining jobs.

More job losses have been expected in the country as the global financial crisis continued to bite.

By the end of the first half of this year at least one third of the 1.5 million employees in the horticultural industry faced the axe as the Kenya Flower Council reported a drop in demand for flowers by up to 30 per cent.

In June, the government announced measures aimed at stemming job losses and creating employment as a way of cushioning the economy from weakening further.

The measures included those aimed at stimulating labour demand, supporting job seekers and the unemployed, expanding social protection and food security.

In his 2009/2010 budget speech, Finance minister Uhuru Kenyatta announced a multi-billion shilling fiscal stimulus package aimed at creating jobs and shielding the weakening economy from a further slide.