Over 30,000 workers lose jobs in the midst of soaring food prices

Tourists in consultation along North Coast's Bamburi beach in Mombasa County on Wednesday 20 September 2017.Tourists have started snailing to Coast hotels ahead of the end year Tourism season.[Maarufu Mohamed,Standard]

Political uncertainty has taken a toll on trade and economic activities in the Coast region with tourism sector players reporting layoffs due to a drop in the number of hotel guests.

Over 30,000 contract and casual workers have lost their jobs owing to a drop in the number of tourists arriving at the Coast, according to sector players.

Kenya Association of Hotelkeepers and Caterers (KAHC) Coast branch executive Sam Ikwaye said the employees were to be rehired after they were laid off during the low season.

“During the start of the low season in April through to July, some 30,000 workers were laid off and were to be rehired in August and September but that is now not possible,” he said.

Several charter companies that had scheduled to start direct flights to Mombasa have either shelved the plan or adopted a wait-and-see attitude because of the political uncertainty.

Many hotels along the Coast have reported bed occupancy of 32 per cent, down from 65 per cent reported in August and September.

“If this political crisis continues, some hotels may close down. Two weeks ago, hotels were doing about 62 per cent bed occupancy but currently it’s about 30 per cent,” he added.

Mr Ikwaye said several international and local conferences have been cancelled, dampening optimism in the sector that was rebounding from the effects of frequent terror attacks two years ago.

“County governments had also booked conferences for either Members of the County Assembly or employees but have cancelled them to campaign,” he said.

IMPORTS DROPPED

Meanwhile, at the Port of Mombasa, containerised imports have dropped to 2,483 Twenty Feet Equivalent Units (TEUs) from 3,195 TEUs in the week that ended on October 4.

“In September through to December we import up to 20,000 cars but we are currently doing about 6,000 units,” said Car Importers Association of Kenya (CIAK) Chairman Peter Otieno.

He said the volume of cargo through the port usually increases in October and November as traders plan for the December and New Year holidays.

Traders at Kongowea market, Mombasa’s biggest agro-produce trading centre, say the number of trucks arriving with commodities have dropped from an estimated 30 per day to just seven.

“The price of foodstuff has gone up. A 90-kilogramme sack of beans has shot up from Sh7,000 to Sh10,000,” said Mwaniasha Kedenge, a trader at the market.

She said that shortage of produce at the market was also because of panic buying by residents stockpiling for fear of prolonged clashes during or after this week’s repeat presidential polls.

The Ministry of Tourism has cut its growth forecast, citing political uncertainty over the repeat presidential elections.

Cabinet Secretary Najib Balala said the cost of insurance for tourists shot up after some countries issued travel warnings.

He said the sector will not achieve the 20 per cent growth projections and warned that the rebound witnessed last year may be eroded if the political impasse is not resolved.

Mr Balala said the growth could drop below the 17 per cent levels recorded in 2016.

“We have already lost out since the month of August. The pockets of skirmishes that followed the announcement of the presidential election results sent a wrong signal to our markets,” he said.

CRIMINAL GANGS

On September 13, the US issued an alert to its citizens travelling or living in Kenya, stating that criminal gangs may take advantage of confusion to carry out crimes.

“Rallies, demonstrations and protests may occur with little notice. As with all large events, there is the opportunity for criminal elements or terrorists to target participants and visitors,” it said.

According to statistics from the Kenya Tourism Board, international tourist arrivals rose by 16.7 per cent to 877,602 last year, the highest since 2014.

The arrivals were boosted by scores of guests for conferences in Mombasa and Nairobi. Mr Balala said the Government had projected that the sector would stabilise in 2018.