Pandemic wiped out millions of jobs in five months – study
George Kebaso @Morarak
An estimated 5.1 million Kenyans in the informal sector lost their jobs between March and August last year due to the impact of coronavirus a survey by the Federation of Kenya Employers (FKE) has revealed.
The survey conducted among 223 small enterprises in Kilifi, Kitui and Busia counties shows that the job losses accounted for 34 per cent of jobs in the informal sector.
It reveals that the number of employees in the enterprises had reduced from 562 before the pandemic to 370.
Also, it shows that the number of people on internship at the businesses had declined from 1,048 before the pandemic to 541, a 48.4 per cent drop.
Enterprises affected included those in the welding and fabrication (16.1 per cent), hairdressing and beauty (16.2 per cent), carpentry and joinery 12.6 per cent, tailoring and dressmaking (10.8 per cent) and motor vehicle mechanics at 9.9 per cent.
Other sectors that were affected include ICT which include cyber cafes and printing, blacksmith, motorbike repair and hotels.
FKE Executive Director Jacqueline Mugo said the study illustrates the effects of the pandemic on, not just jobs, but also livelihoods.
“It means that Covid-19 did not only stop the creation of jobs in the micro-enterprises, but also wiped out jobs,” she said.
The pandemic, the study indicates, interfered with the operations of most enterprises affecting the flow of customers.
About 42.2 per cent of the enterprises indicated that there was reduction in the number of customers.
“Overall, this has great implications on the future of youth employment in this country and the future of work done by the youth,” Mugo said.
Tax policy
Other highlighted effects of the impact of Covid-19 on operations include loss of income, high input costs, and non-performing loans (non-debt remittance).
Other effects are low input supply, limited access to markets and low productivity.
FKE asked d for a supportive fiscal policy by government to support the restoration of jobs in the informal sector.
Mugo said there is need for clear, practical and targeted short-term interventions to improve the situation of enterprises, employees and apprenticeships.
“We appeal to the government to prioritise business recovery in its fiscal policy.
The situation of households and enterprises at all levels is getting worse and active direct government intervention through accommodating tax policy will go a long way in getting the households and enterprises back on their feet,” she added.
Kenya National Bureau of Statistics statistics show that in 2019, the informal sector contributed 82.9 per cent of all jobs in the country.
