President has to save workers from doom

EDITORIAL

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Today is Labour Day. But it is a Labour Day with a diametrically marked difference.

Kenya and the world are marking the day when workers are domiciled at their homes — not by choice but out of compulsion.

The coronavirus has forced employees out of workplaces. Organisations and employers have sent out employees to work from home to avoid infection.

But that is only for the more restrained. Many have laid off staff or forced them on compulsory unpaid leave.

Whichever the case, employees have been sent away without earnings and, with the continuing uncertainties, it is not predicable when the fortunes will change.

Economies have been brought to their knees. In its latest World Economic Outlook, the International Monetary Fund (IMF) projects that the global economy will contract by negative three per cent this year.

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Africa’s economies are projected to decline to -1.6. Last year, the global economy recorded a 2.9 per cent growth; it was expected to improve this year. Then disaster struck.

For Kenya, conservative projections show the economy will decline to three per cent, down from 5.4 last year and 6.3 per cent in 2018. But that looks charitable; it could be worse.

In sum, there is gloom all over. But it is during such moments that great leaders emerge and take decisive steps to pull their nations out of the rut.

This Labour Day presents President Uhuru Kenyatta such a moment. He has to make bold steps to resuscitate the economy, save jobs and enable citizens to put food on the table.

Citizens are looking up to him to unveil more targeted measures to bail out workers, boost businesses and save the economy.

The government must cushion industry and employers. And it should do that through cash bailouts for struggling essential sectors as other countries have done; enhance tax waivers and relief, and pay for goods and services procured. It should create an emergency fund to support workers.

To be sure, the government has introduced tax waivers and other forms of relief. Social and safety packages have also been rolled out to cushion the vulnerable.

But this has merely scratched the surface. The speed with which companies are collapsing or declaring redundancies, sending employees on forced leave or cutting salaries manifests a tough survival terrain.

That is ominous. Danger lurks in an economy where millions are jobless. People and traders go without an income. They become restive and unmanageable.

Simultaneously, the president must begin the process of easing the partial lockdown imposed on some counties to reopen the economy. That’s what other countries are doing.

The President should rescue workers from the looming doom.


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