This archive report was first published on 8 May 2020.
As the COVID-19 pandemic continues to affect businesses globally, a recent report by the Kenya Private Sector Alliance (KEPSA) has revealed that more than half of large Kenyan companies have chosen to retain their employees, despite the economic challenges witnessed in the country.
Published on May 8, 2020, the report indicates that 58% of large companies have opted to keep their employees, while 55% of medium-sized companies have also taken the job retention route.
However, the report also notes that 34% of companies have laid off more than 50 people, with most of these companies operating in the agricultural sector, particularly in horticulture, which has been severely affected by export logistics challenges.
The survey, conducted in April, comes after President Uhuru Kenyatta's warning on Labor Day that more than half a million jobs will be lost in the next six months if the pandemic persists.
"We cannot relax in our efforts to conquer this invisible enemy and to put our economy on a strong growth path. Because, if we do not, we could lose upwards of half a million jobs over the next 6 months. We must do whatever it takes to minimize, if not to fully contain such loss in jobs," President Kenyatta said on May 1.
According to a report tabled before a Parliamentary committee on April 28, 133,657 people, mainly in the formal sector, have been rendered jobless.
The tourism and education sectors have been severely impacted, with 95% and 93% of them respectively reporting high to very high impact due to the closures imposed to limit the spread of the virus.
On the other hand, the finance, health, and social work, and environment, water, and waste firms have been the least impacted by the virus.
As businesses continue to struggle, most companies are seeking financial support from the Government in the form of grants or cheap accessible loans to help them pay salaries.
