The electioneering period in Kenya has been marked by protests. FILE PHOTO | NMG
Half of Kenya manufacturers plan to shed jobs on reduced orders
and sales linked to jitters over the prolonged electioneering period and
tension over the October 26 repeat presidential poll, a new survey
reveals.
Kenya Association of Manufacturers’ 3rd
Quarter Barometer says that 47 per cent of the industries plan to shed
jobs over the next six months following lower than expected sales that
has seen them cut production.
Looking ahead, 64 per
cent of industrial manufacturers forecast zero or negative revenue
growth in the next six months while two per cent expect positive revenue
growth.
“Political uncertainty will adversely affect
industries where profits will dip, with a further beating expected from
rise in the cost of raw materials,” it said.
The
Federation of Kenya Employers echoed the comments on Tuesday, adding
that its members were shedding jobs in a business environment where
production has dropped for the fifth month in a row, weakened by a
constrained money circulation and dropping customer orders.
Postponing projects
Reports indicate that investors are postponing projects on
political jitters as both the opposition and the ruling parties have
engaged in increasingly bitter rhetoric, sparking street protests.
Another
53 per cent of the industrialist say they do not intend to make new
investments over the next six months, says KAM, adding that 75 per cent
expect dip in profits.
The Supreme Court annulled Mr
Kenyatta’s victory on September 1, citing procedural irregularities, and
Mr Odinga has refused to take part in the October 26 poll, saying the
re-run should not happen until major electoral reforms are made even as
the IEBC insisted the polls will go ahead.
The standoff has frightened investors in the region’s most advanced economy and is slowing growth.
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