The Weekly Pulse| 12th June 2020

KAM meets Cabinet Secretary for Labour and Social Protection

Kenya Association of Manufacturers (KAM) led by Chair, Mr Sachen Gudka met Ministry of Labour and Social Protection Cabinet Secretary, Mr Simon Chelugui and Principal Secretary, Mr Peter K. Tum.

The meeting focused on initiatives to mitigate the effects of COVID-19 and recovery strategies.

KAM meets CAK

KAM met Competition Authority of Kenya (CAK) Director-General to discuss competition compliance and measures to address late payments.

KAM meets Cabinet Secretary Ministry of Labour and Social Protection 

• The Ministry of Labour and Social Protection signed a Tripartite Memorandum of Understanding (MoU) with Central Organisation of Trade Unions (COTU) K) and Federation of Kenya Employers (FKE). 

• A Multi-Agency Committee comprising of government and private sector has been formed to prevent job losses and evaluate the impact of Covid-19.

• The Ministry has established a toll-free number for sharing information (0800211168). The number is dedicated to receiving reports from members of the public on labour-related issues or complaints.  It is open from Monday to Friday, 9.00 am to 3.00 pm. The Ministry has also created an email address (complaints@labour.go.ke) for the same purpose.  

• The Labour Ministry is creating awareness and conducting inspection on Occupational Health and Safety. 

• The Ministry is also training to skill and re-skill workers under the National Industrial Training Authority (NITA).

• Mr Chelugui also indicated that a proposal to create a fund for the protection of employees affected by Covid-19 has been developed.

• Labour CS  informed KAM that plans to establish job centres across the country are underway.

• The Ministry is developing a business recovery and competitiveness programme.

• The CS commended the private sector for sustaining and retaining jobs which has created social stability and avoided unrest during the Covid-19 period. He encouraged industry to report on the impact of the President’s economic stimulus on job retention during the pandemic. 

KAM remarks

• Manufacturers are adhering to the health and safety protocols set by the Ministry and Government Regulations on Covid-19.  

• Industry is striving to maintain jobs to avoid loss of employment. However,  Sectors such as Textile and Apparel have experienced job losses. 

• KAM is working with the Ministry of Industrialization, Trade and Enterprise Development who had commissioned Mckinsey & Company to establish the extent of job losses and develop strategies to mitigate this. 

• The Asociation urged Government to prioritize reopening the economy whilst putting in place the necessary health and safety protocols, in order to reduce the impact of COVID-19. This is due to the uncertain nature of the Covid-19 pandemic.  

• KAM also emphasized that a recent survey carried out in partnership with KPMG on the impact of Covid-19 on the manufacturing sector revealed that majority of manufacturers prioritize maintaining jobs and comply with health and safety guidelines. From the survey,  Small and Medium Enterprises (SMEs) in the manufacturing sector are the hardest hit by the crisis.

• The Association urged the Ministry to focus on supporting SMEs to sustain their growth. 

Way Forward

• The Ministry of Labour and Social Protection, KAM, Kenya Private Sector Alliance (KEPSA) and Federation of Kenya Employers (FKE) shall develop a Framework for the phased return of employees to work, prior to reopening the workplace for businesses. 

• The Memorandum of Understanding (MoU) between the Ministry of Labour and Social Protection, COTU and FKE shall be reviewed upon expiry of the implementation period of three months. 

• The Ministry shall review the health and safety protocols across the private sector to inform the Government’s strategy to reopen the economy to sustain jobs. 

For more information: miriam.bomett@kam.co.ke

KAM hosts Live Session on the National Budget

KAM hosted a Live Session on the National Budget Proposals 2020/2021/. It focused on the Manufacturing Sector’s wins and losses in the proposals.

The session hosted KAM Vice-Chair, Mucai Kunyiha; Safal Group External Affairs Manager, Jane Ndung’o, EY Partner, Hadijah Nannyomo and Institute of Economic Affairs CEO, Kwame Owino.

For more information: sally.kahiu@kam.co.ke

World Anti-Counterfeit Day

KAM joined Anti-Counterfeit Authority to mark World Anti-Counterfeit Day, during which the National Baseline Survey against Counterfeit and Illicit Trade was launched.

For more information: joseph.wairiuko@kam.co.ke