The proposal by employers of a fund to give cash-strapped firms money to keep workers on the payroll during unforeseen crises such as Covid-19 is worth considering.
The Federation of Kenya Employers (FKE) argues that such a scheme will enable struggling firms to remain productive while the worker maintains a disposable income, supporting the economy through a crisis.
This is a counter proposal to the Treasury’s recent proposal to create to create an Unemployment Insurance Fund (UIF) to give short-term relief to workers who lost their jobs or are unable to work due to illness.
The FKE has warned that providing adequate benefits and sustaining the fund may be a nightmare.
Its proposal seeks to avert job losses and support workers while they remain productive.
The Treasury should consider this proposal, even as it works with FKE to fine-tune a blue print for the benefit of workers, employers and the economy.
For instance, the two should provide a clear framework on the criteria for selecting firms to benefit from the plan and the level of intervention given that Covid-19 has proved that not all firms are hurt equally by a crisis.
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