Millions of Kenyans lost jobs in the informal sector due to the Covid-19 pandemic, this is according to Federation of Kenyan Employers (FKE) Executive Director Jacqueline Mugo.
Mugo, while addressing the press, raised a number of issues that the federation would want addressed if the situation is to be salvaged.
She noted the push to have employers match up contributions made by staff on NHIF as recently proposed is likely to inhibit job creation in the country.
“Asking employers to match up contributions by staff will only inhibit job creation in Kenya, and will most definitely be counterproductive in the long run,” she noted.
According Mugo, 34 percent of jobs in Micro, Small and Medium Enterprises (MSMEs) were wiped out in 2020.
She also noted that the regulatory policy has made it expensive to do business in Kenya, something that was hurting employers.
The federation noted that COVID-19 has exposed gaps in social protection.
In this regard, the Federation of Kenyan Employers National President Habil Olaka said: “We would want to see the roll out of vaccines improved.”
Adding that: “We do need a National Tax Policy to stop knee jack reactions as seen in certain proposals. COVID-19 has affected us in an imaginable ways and we are seeing the government reacting differently. As much as they have made certain proposals on NHIF, this doesn’t mean that we can’t have discussions.”
In what is likely to attract debate, Mugo noted that they have applied for an opt out option on NHIF contributions in the entirety.
“Some employers have well equipped clinics, hospitals. Should such employers still make contributions? Some employers have private medical insurance,” she noted.