ADVERTISEMENT

More Kenyans likely to lose jobs due to economic paralysis brought by the recent poll

Firms may have to retrench more workers in order to survive election storm

ADVERTISEMENT

With thousands of jobs having been lost so far this year in the banking and manufacturing sectors, analysts said the private sector will at best freeze new hiring or worse off result to job cuts in order to survive the storm.

This comes on the back of one of the worst corporate earnings season with various Nairobi Securities Exchange-listed firms issuing profit warnings.

A number of them have announced that their earnings for the full year ending this month will be lower by at least a quarter compared to the year before.

“A few factors have ganged up to make it very hard for companies to retain the people they have or even review their terms,” said Jacqueline Mugo, executive director of the Federation of Kenya Employers (FKE).

Besides the protracted elections, Mrs. Mugo noted that the virtual shutdown of the plastics manufacturing industry in the wake of an official ban on use of carrier bags is also likely to prolong the labour market recovery.

Hundreds of jobs have been lost at manufacturers of plastic bags which were banned in a move the government said was meant to protect the environment.

She said FKE has noted significant job cuts in agriculture, service and tourism among other sectors.

With an estimated one in every five Kenyan youth of working age unemployed, the soft jobs market signals a worsening of a crisis that can only feed back into the overall economy through weaker demand for goods and services.

The task of creating more jobs has become even harder amid adverse long-term structural changes in the economy.

The labour-intensive agricultural and manufacturing sectors are growing at a slower pace compared to service industries which are riding on automation to eliminate the need to hire more people.

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Linet Toto excited as she unveils sleek ride after 1 month in office [Photos]

Linet Toto excited as she unveils sleek ride after 1 month in office [Photos]

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

UNESCO names Senegal as the true home of Jollof Rice over Ghana and Nigeria

UNESCO names Senegal as the true home of Jollof Rice over Ghana and Nigeria

Top 10 African countries with the highest economic prospects for 2023

Top 10 African countries with the highest economic prospects for 2023

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

ADVERTISEMENT