Employers’ federation warns rising business costs threaten jobs and investment

FKE, CEO Jacqueline Mugo-Photo|Courtesy

The Federation of Kenya Employers (FKE) has raised alarm over the escalating cost of doing business in Kenya, warning that the trend is undermining competitiveness, discouraging investment, and threatening job creation in the private sector.

In a statement, FKE said enterprises across multiple industries are struggling under increased statutory obligations, regulatory burdens, and rising operational costs.

“FKE is concerned by the rising cost of doing business in Kenya, which continues to place a significant strain on enterprises across sectors. Increased statutory obligations, regulatory burdens, and operational costs are impacting competitiveness, investment, and job creation,” the statement read in part.

The employers’ body urged the government to prioritise policies that enhance the ease of doing business, protect jobs, and promote enterprise growth. It emphasised the need for predictability and stability in labour and economic policies to safeguard the private sector’s role in driving growth.

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“We therefore call upon the government to prioritise policies that enhance ease of doing business, protect jobs, promote investment and enterprise growth, and ensure predictability and stability in Labour and Economic Policies,” FKE added.

The Federation reaffirmed its commitment to tripartism and social dialogue, noting its mandate to represent and safeguard employers’ interests alongside the Central Organization of Trade Unions (COTU‑K) and the government.

FKE said it continues to work closely with social partners to develop lasting solutions to the challenges facing businesses. It underscored that unless urgent measures are taken, the rising cost of doing business will erode Kenya’s competitiveness, discourage investment, and weaken the country’s ability to generate jobs.

By Masaki Enock

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