The Export Processing Zone Authority (EPZA) management has allayed fears over massive job losses at the Mombasa based industrial zone.
EPZA says the agreement of change of the companies investors, which was overseen by the Ministry of Labor and Social Protection was mutual and was endorsed on October 25, 2023 as required by the ministry of Investments, Trade and Industry.
According to the EPZA Chief Executive Officer Hussein Adan the industrial zone is committed to create, avail and retain employment opportunities in all its existing companies as well as putting measures to attract more investors.
“We have put measures to ensure that companies strictly adhere to industrial and labour regulations.”
“All our employees are entitled to sound labor practices which are mandatory in our zones and therefore our workers should not whatsoever fear losing any benefits accrued from their contracts due to change of any company ownership,’’ said Adan.
In a gazette notice dated November 28, 2023, the export zone instead reassured its employees that their jobs are secure.
“All that parcel of land known as land reference No. MN/III/10585 measuring approximately nought decimal four nought one seven hectare (0.4017 Ha) situated along Mtwapa-Kilifi Highway, Kilifi County as an Export Processing Zone,” said the notice by trade Cabinet Secretary Rebecca Miano.
They argued the named companies feared to close down this calendar year will instead be under new management.
The authority further said workers in the affected companies will not lose entitled benefits as captured in their previous contracts and as guided by the labor laws.
Fear and uncertainty had gripped the 8,000 employees of Mombasa Apparel Epz Limited and Ashton Apparel Epz Limited manufacturers which are said to have been earmarked for closure.
“EPZA hereby informs and assures the public and the employees concerned that the EPZA companies will not close but undergo change of ownership.”
“There has been ongoing consultative engagements between all relevant stakeholders,’’ said Adan.
EPZA companies are among key industries with a large workforce in the country.
For instance, the EPZA Athi-River branch has over 20,000 employees working in various companies.
The companies which predominately deal with apparel making also extends to pharmaceuticals and food processing.
The government in May announced that it is set to establish five more EPZA zones in the country at a tune of approximately Sh1 billion.
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