In Summary
  • Speaker Kenneth Lusaka admitted that the country was facing economic challenges.
  • Officials from the private sector want Senate to come up with mechanisms that will enable business to thrive.
  • Kepsa chairman said SMEs hardest hit by the effect of having too many regulators to deal with.

The current state of the economy has been described as a cause for concern especially given the increasing job losses and closure of businesses.

Giving a keynote address during a roundtable meeting between the Senate and the Kenya Private Sector Alliance (Kepsa) at a Naivasha hotel yesterday, Speaker Kenneth Lusaka cited the recent job losses at the troubled Mumias Sugar Company and several other firms.

He admitted that the country was facing economic challenges, citing austerity measures by the government aimed at cutting costs.

“The country is staring at a major crisis going into the future and the current situation is a recipe for chaos. Unfortunately, the sad reality is those who are out of employment will looks for ways of survival,” warned Mr Lusaka.

He termed the situation as a time bomb, asking stakeholders to come up with practical solutions on how to address the current state of the economy.

REDUCE BUREAUCRACY

The Senate Speaker spoke strongly against what he termed as “red tapes,” alluding to a case of some international investors who spent three days in Kenya waiting to meet a Minister only to go to Rwanda, meet the President and eventually decide to set up their business there.

He raised the need to reduce government bureaucracy and increase competitiveness to attract investors into the country.

The Speaker said with more Kenyans moving to urban centres, according to the latest census, county governments need to come up with plans that attract investors to set up industries outside Nairobi.

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