Kenyans have been cautioned to brace for tough times ahead as the economy gears for job losses due to harsh economic times.
Federation of Kenyan Employers (FKE) announced that many of the employers in the manufacturing, banking, and agricultural sectors were facing tough financial times and added job losses were eminent.
The FKE cautioned that the economy was not growing as fast as anticipated and therefore many organisations could barely make ends meet.
The situation was further aggravated by the high production costs that have driven several multinational companies into neighbouring countries that have more friendly tax regimes and lower production costs.
The employers’ caucus warned that unless production costs come down and investment friendly policies are put in place, many companies will be forced to close shop leading to massive job losses.
The Federation’s Executive Director Jacqueline Mugo told participants at the 31st Annual General Meeting of the organization that they were in talks with affected employers in a bid to chart the way forward.
Mugo said many employers were facing a financial crunch which could not be sustained for much longer.
She called on the government to identify ways of cushioning employers against the tough economic times by reviewing its energy costs and offering tax exemptions.
The Director called for more consultations to be undertaken among key stakeholders before the housing tax can be effected.
Nakuru Deputy Governor Dr. Eric Korir assured employers that the County government was committed to providing a conducive environment for investors with a view to transforming it into a major economic hub.
Dr. Korir urged employers to take advantage of the goodwill to expand their operations in the devolved unit.
He said that the county was gearing towards establishment of more commercial hubs and was therefore working to improve service delivery and ease processes for entrepreneurs gearing to set up businesses.
By Jane Ngugi