Referendum push scaring investors - FKE

The Federation of Kenyan Employers (FKE) has said calls for a referendum are creating an environment that may dent investor confidence.

The employers also criticised the impending government move to implement new National Health Insurance Fund (NHIF) rates.

The FKE said in a statement that it was improper for the NHIF to announce a major change touching on employees without engaging their employers as key stakeholders.

"Whereas employers do not contribute to this fund, their role in collection, remittance and compliance must not be downplayed," said FKE.

LACK OF DIRECTION

The employers argued that health care is a complex national issue for which adequate and effective consultations are key.

They said such actions show lack of clear direction on how to implement the government's plan for universal health care.

"Further, making such unilateral decisions could bring to question the capacity of NHIF to handle the intended changes in a well-thought-out manner," said the employers.

On the clamour for a national referendum by both the opposition and the Council of Governors, FKE said that the effects of the referendum should be properly gauged to the already high cost of doing business in the country.

They said it was not yet time for the country to be engulfed in yet another political duel just a year after the hotly contested general election besides the country trying to crawl from other hostile challenges posed by insecurity and terrorism.

"Kenya is on the right path to economic prosperity and whilst devolution is also set to transform the outlook of Kenya, this depends on how we are quickly able to get all structures working effectively and ensure that time and resources are not wasted on unnecessary sideshows," argue the employers.