Kenya lost 230,000 formal jobs since upsurge of virus

More than 230,000 people in the formal sector have lost jobs since the coronavirus pandemic struck, Labour Cabinet Secretary,  Simon Chelugui has said.

The CS said the number does not include those in informal sector, who are not officially registered in government’s portfolio, which means more people have been pushed out of employment.

“Despite measures to cushion employees, there are still so many other people who have lost their jobs.

So far, the ministry’s official records show that over 230,000 people have been sent home and I do not have records of the informal sector because they are still not registered and it is an initiative we are doing as a Ministry,” said the Chelugui.

The CS made the remarks during the launch of United Kingdom’s urban digital cash transfer programme in response to the Covid-19 pandemic in the country.

The event was witnessed by British High Commission Development Director, Richard Erlebach and GiveDirectly, the implementing organ.

The UK government availed a grant of about £5 million (Sh719.02 million) to finance the digital cash transfer programme.

The on going programme is expected to cover 52,700 vulnerable people living in urban informal settlements, in Nairobi and Mombasa.

Set to run for three months, the programme is expected to go a long way in improving their livelihood and wellbeing, and enable them to participate in rebuilding of the economy.

Chelugui said the Ministry is conducting a survey to establish numbers of employees in every sector, noting that currently, records indicate that there are 2.9 million formal jobs and at least 15.9 million others are working in informal sector.

“The Government is working hard to see how we can support this group that has lost their jobs on the long term but before then we have to support them, we have to support the new vulnerable who have lost jobs and opportunities because of the pandemic,” he added.

Promote dialogue

Chelugui said he initiated a discussion with Federation of Kenya Employers (FKE), Kenya Private Sector Alliance (Kepsa) and Central Organisation of Trade Unions – Kenya (Cotu-K), where they signed an agreement with the underlying message to promote dialogue because the problem is beyond employer and employee.

“I asked them if not necessary they should not sack the employees… if possible take half pay, work from home and also schedule days other than sacking people and we have been able to address this and that is why there have not been industrial unrest despite the challenges and this is the spirit we want,” the CS added.

He said the most affected were people in the aviation sector, hospitality, floriculture and horticulture because there are many players involved and the impact has been huge.

“Most of these sectors drive the economy – tourism, wildlife – because we do no have people coming in and as a government we have to support sustenance of national parks like Tsavo and Maasai Mara because they are not able to generate income for themselves,” the CS explained.

He said the first step the Government has taken is to control the pandemic followed by dealing with revival.

“The next step will be a painful session for Kenya, we have to roll up our sleeves, sacrifice a lot, minimise our expenditures and focus on resuscitation and resumption of economic activities and restore jobs and businesses,” the CS stated.