This archive report was first published on 12 May 2020.
As the COVID-19 pandemic continues to wreak havoc on the global economy, Kenya's manufacturing sector has been severely impacted, with over 30,000 formal jobs lost and 80% of existing jobs vulnerable to job losses.
According to a report set to be launched today by the Kenya Association of Manufacturers (KAM), the job situation in the sector remains grim, despite the government's stimulus package.
The report, prepared in collaboration with audit firm KPMG, found that between five and eight out of 10 jobs have been impacted by the pandemic, with employees working less, taking pay cuts, or on the verge of losing their jobs.
Kenya Association of Manufacturers (KAM) chairman Sachen Gudka noted that the manufacturing sector has about 330,000 direct and three million indirect jobs, with 30,000 formal jobs already lost and another 140,000 or so remaining vulnerable if the COVID-19 situation persists.
"Manufacturing machinery has ground to a halt with subdued demand and slow business, putting at least 1.8 million workers in the informal sector at risk of becoming jobless," Gudka said during a webinar with Stanbic Bank East Africa regional economist Jibran Qureshi.
The report highlights the devastating impact of the pandemic on various sectors, including agriculture, retail, and food products, tobacco, beverages, and textiles.
"Some sectors have received a major boost during the pandemic, with products like food, home care, bleaches, detergents, plastics, and sanitisers gaining more relevance," Gudka said.
