•“We have put measures to ensure that companies strictly adhere to industrial and labour regulations.”
•In a gazette notice dated November 28, 2023, the export zone reassured its employees that their jobs are secure.
Image: HANDOUT
The Export Processing Zone Authority (EPZA) management has allayed fears of massive job losses at the Mombasa-based industrial zone.
EPZA says the agreement of change of the company investors, which was overseen by the Ministry of Labor and Social Protection was mutual and was endorsed on October 25, 2023, as required by the Ministry of Investments, Trade and Industry.
According to EPZA Chief Executive Officer Hussein Adan, the industrial zone is committed to creating, availing and retaining employment opportunities in all its existing companies as well as putting measures to attract more investors.
“We have put measures to ensure that companies strictly adhere to industrial and labour regulations,” said Adan.
“All our employees are entitled to sound labour practices which are mandatory in our zones and therefore our workers should not whatsoever fear losing any benefits accrued from their contracts due to change of any company ownership."
He added:
“We have put measures to ensure that companies strictly adhere to industrial and labour regulations.”
In a gazette notice dated November 28, 2023, the export zone reassured its employees that their jobs are secure.
They argued the named companies feared closing down this calendar year would instead be under new management.
The authority further said workers in the affected companies will not lose entitled benefits as captured in their previous contracts and as guided by the labour laws.
Fear and uncertainty had gripped the 8,000 employees of Mombasa Apparel Epz Limited and Ashton Apparel Epz Limited manufacturers which are said to have been earmarked for closure.
“EPZA hereby informs and assures the public and the employees concerned that the EPZA companies will not close but undergo a change of ownership,” said Adan.
“There has been ongoing consultative engagements between all relevant stakeholders."
EPZA companies are among the key industries with a large workforce in the country.
For instance, the EPZA Athi-River branch has over 20,000 employees working in various companies.
The companies which predominately deal with apparel-making also extend to pharmaceuticals and food processing.
The government in May announced that it is set to establish five more EPZA zones in the country at a tune of approximately Sh1 billion.