- Concerns raised of expatriates are paid huge sums whereas employees are hired on meagre amounts, with no annual leave or other benefits.
- Private sector leaders say investors are facing a tough operating environment hence the numerous cases of companies issuing profit warnings.
Image: JACK OWUOR
National Assembly Speaker Justin Muturi has taken a swipe at the private sector, blaming it for the lack of jobs in the country.
He cited cases of the private sector skewing and slanting requirements of the Employment Act through the use of contract employees.
Muturi said this was the reason leading financial institutions and companies no longer hiring employees but outsourcing the same on contractual basis.
The speaker further poked holes on the private entities' overreliance on expatriates, saying the country cannot speak of creating jobs when opportunities are handed to foreigners.
“There is need for this to be addressed, otherwise the private sector may be deemed to be contributing to an increase in unemployment in this country,” Muturi said.
He said it was regrettable expatriates are paid huge sums, whereas employees are hired on meager amounts, with no annual leave or other benefits as guaranteed by the Employment Act.
“The right to fair labour practices is guaranteed by the Constitution and the private sector should abide by the requirements of Article 41 of the Constitution.”
Muturi raised the issues at the Speakers’ Roundtable with the Kenya Private Sector Alliance (Kepsa) in Mombasa on Friday.
The meeting was held under the theme of “Boosting economic competitiveness for growth and job creation” and brought together MPs, National Assembly leaders, and private sector leaders.
The speaker further raised concerns about the low penetration of the insurance sector – currently at three per cent, yet it is one that has the capacity to create jobs.
He said this does not compare fairly with other emerging economies such as South Africa, Egypt and Nigeria, amid concerns of the safety of Sh40 billion premiums held by brokers and agents.
Kepsa chairman Nic Nesbitt, on his part, said investors are facing a tough operating environment hence the numerous cases of companies issuing profit warnings and planning to lay-off staff.
“Currently, businesses face 13 per cent higher costs compared with their peers in the region. This is due to high costs of production in terms of power, inputs, logistics, fees and taxes charged.”
Nesbitt asked Parliament to create a regulatory environment that is conducive for job creation, growth and entrepreneurship.
Kepsa CEO Carole Kariuki called on Parliament to work with them towards identifying and implementing legislative interventions to give Kenyan firms a competitive edge for job creation.
Even so, the Executive – the main employer, has been on the spot over its practice of hiring elderly persons at the expense of the youth.
Most people, largely seconded to parastatals, are largely retirees who once held state jobs, eliciting the debate on the place of youth in the public service.
The forum was not free of blame games on the bribery question with Muturi and Minority Leader John Mbadi accusing the private sector of perpetuating bribery.
“Whereas corruption has been associated with government officials, the private sector has for long been accused of being the driver of it.”
“In fact, we are yet to see a single government officer charged with giving bribes. All the cases are about government officers receiving bribes. From who?” Muturi asked.
“Corruption is perpetuated by the private sector. Talk to your members on the way to do business. If the private sector does away with graft, there will be no case. Please don’t give out money. Pay taxes, then hold government to account for it,” Mbadi said.
Image: JACK OWUOR