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Higher freight, input costs dampen recovery of jobs in manufacturing sector
Summary
Firms polled by advisory firm KPMG and the Kenya Association of Manufacturers (KAM) primarily point to higher freight charges, cost of raw materials and the weaker shilling as the reasons for the higher costs.
More of them (23 percent) have, therefore, laid off staff this year compared to last year (18 percent), highlighting the difficulties that remain in Kenya’s ongoing efforts to climb out of the Covid-19 economic hole.
The joint survey is a follow-up on another one done last year when the pandemic first hit Kenya, which sought to find out the impact the pandemic had on business operations in the manufacturing sector.
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