Covid-19: Over 130,000 Kenyans Working in Formal Sector Lose Their Jobs

Over 100,000 Kenyans have lost their jobs following the outbreak of coronavirus in the country, according to a government report.

The Ministry of Labor in a report filed in Parliament this week said at least 133,657 Kenyans have been rendered jobless as the Covid-19 pandemic continues to take a toll on the country’s economy.

The ministry indicated that all the lost jobs are in the formal sector and the number does not include workers on unpaid leave and those who have taken pay cuts.

A majority of companies operating in Kenya, excluding those offering essential services, have had their businesses negatively hit by the Covid-19 pandemic with the government ordering some to shut down to avert the spread of the disease.

The most affected sectors are transport, aviation, hospitality and tourism, manufacturing, wholesale and trade, agriculture and the informal sector, according to the Labor Ministry’s reports.

The ministry added that the number of lost jobs is likely to go up as some companies are yet to notify them about redundancies as required under the Employment Act, 2017.

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

Likewise, Kenyans working abroad have not been spared with the ministry noting that some have complained over non-payment of salaries, health, and restricted movement. The ministry said most of the concerns were raised by Kenyans working in the United Arab Emirates and Saudi Arabia.

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