MOE, a well-known blogger and internet personality, has revealed on his X handle that over 5,000 Kenyans have lost their jobs since 2022.
According to him, 57 companies have been forced to lay off workers due to harsh economic conditions.
He pointed out that high taxes, rising statutory deductions, and unpaid bills amounting to over Sh1 trillion have left businesses struggling, forcing them to cut costs by reducing their workforce.
MOE noted that high taxes have created an unsustainable environment for businesses.
Many companies are being forced to allocate a large share of their earnings to the government, leaving them with limited funds to cover operational expenses.
This has pushed many businesses to the brink, with layoffs becoming a common survival tactic.
He emphasized that these taxes are a major obstacle, preventing companies from maintaining their workforce and running efficiently.
Rising deductions were another critical issue. These include mandatory contributions for employee benefits and other statutory obligations, which have grown in recent years.
With these increased financial burdens, businesses are left with little choice but to trim their budgets, often by reducing their staff.
He stressed that this added pressure has made it nearly impossible for many companies to sustain operations without drastic measures.
It was also also revealed that the impact of unpaid bills, which he described as a crisis.
He revealed that businesses are owed over Sh1 trillion for goods and services they have already delivered.
These delayed payments have created cash flow challenges, making it difficult for companies to meet their obligations, including paying employees.
MOE explained that the lack of liquidity has left many businesses no option but to downsize, resulting in widespread job losses.
The job losses have had a devastating effect on Kenyan families and communities.
MOE expressed concern that many affected individuals are now struggling to afford basic needs such as food, housing, and education.
This has led to increased poverty and put more pressure on families already dealing with rising living costs.
The situation has also strained local economies, as unemployed individuals contribute less to the economic cycle.
The government has not been spared from the ripple effects of job losses.
With fewer people employed, income tax revenues have decreased, leaving the government with less money to fund critical services such as healthcare, education, and infrastructure.
This could lead to a downward spiral, where reduced revenues force the government to impose even higher taxes, further worsening the situation.
He urged the government to review its tax policies to ease the burden on businesses and promote economic growth.
Clearing pending bills was another recommendation he made, as it would provide companies with the cash flow needed to stabilize their operations.
High taxes, rising deductions, and unpaid bills have created a hostile environment for businesses, leaving them unable to sustain their workforce.
His call for action highlights the urgent need for reforms to support businesses, protect jobs, and ensure economic stability for the benefit of all Kenyans.
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