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The Federation of Kenya Employers (FKE) has revealed that 70,000 employees in the formal private sector lost their jobs between October 2022 and November 2023.

In a report shared on Friday, November 24, 2023, FKE noted that 192 jobs are lost on a daily basis with 40 percent of employers threatening to reduce the number of employees to meet the increasing costs of operations.

“Between October 2022 and November 2023, we have lost 3% (70,000) of the jobs in the formal private sector and 40% of employers have reported that they are planning to reduce the number of employees to meet the increasing costs of operating in Kenya. We will be launching the full survey report on Trends in the month of December 2023,” the report reads in parts.

The report also indicated that the costs of doing business have become unsustainable since the enactment and implementation of the Finance Act 2023.

In the report, FKE also observed that employers have expressed that the changes have had a negative impact on cash flows.

The organization additionally underscored that the cost of capital which is affected by government policies, and market conditions among others has skyrocketed making it hard for the private sector to operate effectively.

“The cost of doing business has become unsustainable since the enactment and implementation of the Finance Act 2023. The employer’s view is that the changes have had an overall negative impact on cash flows and the financial positions of enterprises in various ways,” the report reads in parts.

Additionally, FKE said the weakening of the shilling has adversely affected businesses which rely on imports.

“The weakening of the shilling has aggravated the situation further and has adversely affected businesses that rely on imports, including imports of machinery and equipment necessary for our manufacturing industries,” the report added.

Further, FKE disclosed that employee productivity was dwindling as a result of the current cost of living, and the recent additional taxes which have seen a shrink in the payslips.

‘This kind of environment compels workers to seek alternative sources of income and therefore leads to low productivity,” the statement added,