NASA supporters running for safety after the police hurled tear gas at them during anti-IEBC demonstrations in Nairobi. [Photo/ The star. ]
A new survey has revealed that half of the manufacturing companies in Kenya would soon begin to reduce its workforce following the poor sales and low orders they have encountered attributing the to political anxiety in the country.
According to the Kenya Association of Manufacturers' 3rd quarter barometer, 47 percent of the industries are planning to reduce the workforce by half due to the lower sales that have obtained than what they expected.
“Political uncertainty will adversely affect industries where profits will dip, with a further beating expected from rise in the cost of raw materials,” read part of the report as quoted by the business daily. The report has been backed by the Federation of Kenya employers who added that its members are also planning to reduce the number of workers following the continuous drop in the production for the last five months in a row. They have linked the drop to the weak money circulation and low customer orders.
The report by KAM also said that 53 percent of the industries do not intend to make investments in any new projects for the next six months. It further states that 75 percent of the investors are expecting a dip in profit.
The standoff between the political parties that has sparked protests that has slowed the economy by scaring the investors.