Labour Cabinet Secretary Simon Chelgui has announced a national government plan to cushion employees who are rendered jobless. 

According to CS, the government is planning to establish an unemployment relief fund.

The fund will be part of the Covid-19 recovery plan. In the course of the pandemic, most Kenyans have lost their jobs.

Speaking on Friday, Chelgui said that the pandemic has resulted in the unintended outcome of job losses.

The CS was speaking during the employers’ annual virtual conference. He said the state would also conduct an impact assessment on the effect of the Covid-19 pandemic on migrant workers.

“Millions of employers and employees are already suffering immediate losses in terms of income and employment. This pandemic has affected not only the health of the workers but also the number of jobs available,” Chelugui said.

The fund will mostly benefit Kenyans who rely on the informal sector to earn a living. Currently, the sector employs about 59.9 percent of Kenyan workers.

The Cabinet Secretary noted that businesses should now establish frameworks that will cushion Kenyans in the event of an economic crisis. 

“For this reason, businesses need to adapt to changes as fast as they happen and ensure their preparedness for future pandemics or crises to ensure business continuity,” the CS said.

The new plan by the government comes after the International Labour Organization said the Covid-19 pandemic could increase global unemployment by almost 25 million.

According to the agency, governments should anticipate underemployment on a large scale, as the virus outbreak's economic consequences translate into reductions in working hours and wages.