Corona control measures claim 133,657 formal jobs

The Covid-19 pandemic, first detected in Kenya 49 days ago, has already claimed 133,657 formal jobs and forced nearly half a million labourers on unpaid leave, according to a new report.

Nearly all the sectors of the economy have been affected with transport, aviation, hospitality, manufacturing, trade and agriculture standing out.

The report prepared by the Labour ministry and tabled in Parliament on Tuesday indicates that all the 133,657 lost jobs so far are in the formal sector and the number excludes employees currently on unpaid leave and those on pay-cut.

According to the report, the majority of those affected — up to 500 workers — are from the manufacturing sector, which is one the Big Four agenda through which President Uhuru Kenyatta hopes to lift the country’s economic growth.

The security sector has sent home 300 workers, according to the report.

“The numbers are likely to rise since most companies are yet to notify the ministry on redundancies as required under the Employment Act, 2017,” reads part of the report.

“Measures put in place to contain the spread of the pandemic have resulted in a loss of jobs in key sectors of the economy. Also witnessed work-related fatalities and causalities involving employees in key organisations offering essential services.”

About 300,000 workers in the tourism sector have been sent on unpaid leave since the beginning of this month and could lose their jobs if the situation does not improve by June.

In the horticulture and floriculture industry, 50,000 employees have also been sent on unpaid leave while 900 others from four different firms have been given redundancy notices.

In the transport sector 90,600 people have been affected following the restrictions of movement in out of Nairobi, Mombasa, Kwale and Kilifi announced by President Kenyatta.

About 58.1 percent of Kenyans in the informal sector employment have been affected since most of the businesses rely on imports from China.

“The pandemic has affected labour migration management across the globe because of restriction in travel and lockdown,” reads the report.

Main reasons given for the loss of jobs, according to the report, include reduced revenues, loss of business opportunities, loss for market for goods and services, a shortage of raw materials and restructuring due to tough economic times.