• While releasing the report on Friday, FKE CEO Jacqueline Mugo said the survey found that finance and cash flow, operations and supply chains of businesses are worst hit by Covid -19.
•“84 per cent of enterprises reported that the effect of Covid-19 on their cash flow was adverse. 79 per cent reported that their operations were adversely affected and 75 per cent indicated that their supply chains were adversely affected,” She said.
A new Federation of Kenya Employers report shows the coronavirus has wiped out 80 per cent of all jobs created in the modern private sector since 2015.
A new Federation of Kenya Employers report shows the coronavirus has wiped out 80 per cent of all jobs created in the modern private sector since 2015.
The survey released on Friday showed the average number of employees in respondent companies reduced from 406 to 372, an 8.3 per cent reduction in the total number of employees.
While releasing the report on Friday, FKE CEO Jacqueline Mugo said the survey found that finance and cash flow, operations and supply chains of businesses are worst hit by Covid -19.
“84 per cent of enterprises reported that the effect of Covid-19 on their cash flow was adverse. 79 per cent reported that their operations were adversely affected and 75 per cent indicated that their supply chains were adversely affected,” She said.
The survey also found that two-thirds of private sector enterprises feel that the government has not done enough in helping them overcome the challenges of Covid-19.
A total of 69 per cent of the enterprises indicated that the interventions by the government were not helpful in mitigating the adverse impact of Covid-19 on their finance and cash flow.
Also, 66 per cent and 60 per cent respectively indicated that government interventions were not helpful in mitigating the adverse impact of Covid-19 on their supply chains and operations.
“This calls for the government to do more and offer innovative solutions towards supporting enterprises to realize a quick economic recovery. Some of the urgent measures that will have an impact include further reduction of corporate taxes, including removal of the 1% revenue tax that is to kick in on 1st January 2021.”
Two-thirds of formal sector enterprises decry high labour costs and employment entitlement.
Also, 71 per cent of the respondents indicated that labour costs and employment entitlements benefits constrain their recruitment decisions.
The federation said there is a need to support enterprises to create more job opportunities even as the country grapples with the youth unemployment challenge.
"This, therefore, necessitates greater collaborative work among the Social Partners to stabilize the work environment and maintain competitive labour costs. We, therefore, continue to ask Trade Unions to support the spirit of the Memorandum of Understanding (MOU) when it comes to managing the labour costs to enable enterprises to recover and maintain peoples jobs."