Job losses on the increase

Numerous firms have laid off a sizeable number of employees this year, citing a harsh economic environment and the need to bring down costs.

It is estimated that one in three companies listed at the Nairobi Securities Exchange is hurting from a toxic mix of factors, with massive job layoffs capturing the collective pain.

These large firms, which are also among the biggest employers, have either reported losses or a sharp drop in revenues and profitability.

Among the reasons given by individual firms, for the financial losses are a delayed payment from the State for supplies, rampant fraud and high cost of doing business.

The Government has claimed to have created over 800,000 jobs over the last five years, although there has been uproar whenever the State publishes its numbers. Kenyans including experts say these numbers might not reflect the reality on the ground.

The megaprojects that the Government has pumped billions in do not appear to be creating the much-needed jobs. One way of creating jobs, according to analysts, is to channel these billions in the sectors that have a major impact when it comes to employment creation.

 Agriculture, which accounts for the bulk of workers in the country, has to an extent faced neglect and so have jua kali sector and the numerous small and medium enterprises that do not survive beyond the third year of being created.