The government has come out to clear the air over allegations that 8,000 Kenyans are set to lose their jobs following the sale of parastatals in Mombasa.
Following consultative meetings with stakeholders such as the Ministry of Labour, the Exports Processing Zones Authority (EPZA) clarified that all employees will still report to their work duties and receive salaries even as Mombasa Apparel EPZ Limited and Ashton Apparel EPZ Limited change ownership.
"It was resolved, outlined, and agreed upon by all parties in one of these engagements that there shall be no loss of jobs and termination of benefits for the employees with the upcoming change in ownership," stated Chief Executive Officer of EPZA, Hussein Adan Mohamed.
The government, under the Export Processing Zones (EPZ) Authority, earmarked Mombasa Apparel EPZ Limited and Ashton Apparel EPZ Limited garment manufacturers in Jomvu, Mombasa County, for sale.
With the deal closed, a section of Kenyans were worried that the companies would allegedly be closed, leading to job losses.
"EPZA hereby informs and assures the public and the employees concerned that the EPZ companies will not close but are undergoing a change of ownership," Adan further commented.
EPZA promised to keep in touch with the current employees and provide constant communication with the new arrangement taking place.
"In ensuring full compliance and adherence to the industrial and labour regulations, the Authority has established structures to guarantee sound labour practices in the EPZ companies.
"Our commitment extends to constant engagements with relevant stakeholders, including EPZ companies, employees, workers' unions, and Government Agencies, to create and maintain clear communication channels while safeguarding all investments," the statement read in part.
Furthermore, the National Government on Monday announced that 11 other parastatals were listed for privatisation.
Kenya Literature Bureau (KLB), Kenyatta International Convention Centre (KICC), National Oil Corporation (NOC), Kenya Seed Company Limited, Mwea Rice Mills, and Western Kenya Rice Mills Limited were among the parastatal put up for sale.
Other parastatals listed were Kenya Pipeline Company, New Kenya Cooperative Creameries, Kenya Vehicle Manufacturers Limited, Rivatex East Africa Limited, and Numerical Machining Complex.
In a dispatch, the government revealed that it listed the Kenya Literature Bureau and KICC for sale as the two parastatals that needed to be incorporated into a limited company.
