END OF THE ROAD

Kenya must create climate favourable to do business

Job cuts are a matter of great concern

In Summary

•Kenya's tax regime is anti-investment, country must stop forcing business out.

•Unemployment has a serious socio-economic impact on any country.

SportPesa staff being addressed by CEO Ronald Karauri.
FIRED: SportPesa staff being addressed by CEO Ronald Karauri.
Image: COURTESY

Job loss is a traumatising and unsettling,  no one wants to go through it.

Sadly, this has become the norm in Kenya's formal and informal sectors.

In the last four months alone, 2,000 people have lost jobs due to restructuring, relocations and outright closures.

The number does not capture job loses in the informal sector, mostly unrecorded.

One cannot spend one's entire life in employment but it is saddening to see young people just joining employment being sent packing.

Investors are in business to make a profit, so when the situation becomes untenable they have no choice but to cut their losses. 

Truth be told, Kenya has not been friendly to businesses, local or foreign.

The country's tax regime is one of the most unfavourable and punitive in the region and very anti-investment.

This coupled with factors like energy and labour costs has forced many investors to shift to Rwanda, South Africa, Ethiopia, Egypt and the UAE.

Corruption makes it worse, as many investors are forced to pay huge sums to operate.

President Uhuru Kenyatta and his Jubilee administration must live up to their promise of job creation instead of making politics their preoccupation.

Unemployment has a grave socio-economic impact and unless Kenya acts now, it soon will pay dearly.