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Economy

47pc of factories to shed jobs over election jitters

The electioneering period in Kenya has been marked by protests. FILE PHOTO | NMG
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.

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