This archive report was first published on 15 October 2019.
Kenya's job crisis has reached alarming levels, with at least nine companies laying off 14,000 employees in recent months. The Senate Labour committee has been directed to investigate the reasons behind the rampant closure of businesses and job cuts.
According to a petition filed by Kakamega Senator Cleophas Malala, the crisis is not only affecting the economy but also has serious social implications, including a rise in depression and suicide cases.
Malala argued that the closure of businesses is mostly occasioned by an unfavourable business environment in the country and the inability of businesses to sustain themselves.
“If we allow these massive business closures and job losses, we should also be ready to shoulder massive cases of depression and suicide as a country,” he said.
Malala pointed out that companies such as Stanbic Bank, East African Portland Cement Company, Kenya Airways, Finley Flowers, Nakumatt, Nestle Kenya, Unilever Tea Kenya, and Securex Company have laid off thousands of employees.
He urged the government to enact favourable economic policies for businesses to thrive and simplify the tax regime for consistency of policy and attraction of more investment.
Malala also criticized the government for failing to create enough jobs for the youth graduating from colleges, saying it is immoral.
“This is a sad state of affairs. As a country, we must delve more into the root causes of these closures and urge the Government to enact favourable economic policies for businesses to thrive,” Malala said.
He added that the government's inability to create jobs has resulted in a decline in tax revenue, which will affect the implementation of free basic education, free maternal healthcare, and Universal Health Coverage.
Senate Majority leader Kipchumba Murkomen also contributed to the motion, saying the economy is performing worse under the current government than it was during the previous administration.
Nominated Senator Rose Nyamunga added that there is need to go beyond partisan politics and give Kenyans direction on how to handle the issue.
Published on October 15, 2019
