Daily Archives: February 12, 2017

EAST AFRICA: RETRENCHMENT FEARS AS ECONOMIES SLOW DOWN

As the region’s economic fortunes continue to wane, several companies keen to cut costs and return profits have turned to retrenchment, rendering at least 6,000 employees jobless in the past three years.

The high cost of credit, reduced spending power, a high cost of living coupled with non-performing stocks due to low investor appetite, have seen companies rethink their strategies, with employees becoming the easy targets.

The Kenyan banking sector, with several operators having a regional presence, has been in the lead in shedding jobs for the third year in a row, with 2017 likely to witness even more job losses as the country heads into elections, in a market where investors are already jittery.

The shift by most businesses to digital platforms has seen an uptake of mobile and online banking, which in retrospect has now been a key contributor to the job cuts. In 2015 alone, the banking sector recorded 711 job losses, data from the Central Bank annual survey report shows.

Source: NAM NEWS NETWORK