Many companies in Kenya are set to shed jobs over reduced business and sales due to jitters arising from the prolonged electioneering period and subsequent tensions over next week’s repeat presidential elections.
The Supreme Court of Kenya annulled Uhuru Kenyatta’s victory in the August 8 elections citing procedural illegalities and irregularities. On his part, Mr. Odinga, Nasa’s presidential candidate has refused to take part in the forthcoming elections until major electoral reforms are made.
IEBC has however insisted that the polls will go ahead as planned.
In a survey that was released by the Kenya Association of Manufacturers (KAM) on the country’s third quarter business barometer, close to 50 percent of the industry players are planning to shed jobs over the next 6 months following a dip in business profits citing political related factors.
There has been a reduced production and 64 percent of industrial manufacturers in Kenya predict negative or zero revenue growth over the next six months. Only 2 percent expect a positive growth in revenue.
The Federation of Kenya Employers mirrored the report’s findings adding woes to the already troubled economy. It said that most of its members are shedding jobs in a business environment that has been greatly affected by unwelcoming political developments. It cited dropping customer purchases, constrained money circulation and reduced production that has continued to drop for the past five months.
Kenya’s economy is the most advanced in the region. But the current political standoff has sent jitters to investors who are now scared to invest in the country.