The management of the Mombasa-based industrial zone, the Export Processing Zone Authority (EPZA), has allayed concerns over the loss of a significant number of jobs.
Instead, the export zone told its staff that their jobs were safe in a letter dated November 28. It stated that the enterprises listed, which were thought to close this year, would instead be run by new management.
According to EPZA, employees of the impacted enterprises will continue to receive benefits that were stipulated in their prior contracts and are mandated by labor regulations.
“EPZA hereby informs and assures the public and the employees concerned that the EPZ companies will not close but undergo a change of ownership. There have been ongoing consultative engagements between all relevant stakeholders,’’ reads part of the letter.
The 8,000 workers of the factories Mombasa Apparel EPZ limited and Ashton Apparel EPZ limited, which are rumored to have been targeted for closure, have recently been overcome with anxiety and uncertainty.
According to EPZA, the change in the firms’ investors was mutually agreed upon and approved on October 25 as mandated by the Ministry of Investments, Trade, and Industry. The arrangement was supervised by the Ministry of Labour and Social Protection.
CEO of the export zone Hussein Adan said that the industrial zone is dedicated to bringing in new investors and to providing, obtaining, and maintaining employment opportunities in all of its current businesses.
“We have put measures to ensure that companies strictly adhere to industrial and labour regulations. All our employees are entitled to sound labour 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.
Among the major sectors in the nation with a sizable labor force are EPZA firms. For example, the EPZA Athi-river branch employs more than 20,000 people in a variety of businesses. The businesses that deal mostly with clothing also prepare food and manufacture medications.
In May, the government declared its intention to create five additional EPZ zones around the nation, at an estimated cost of Ksh.1 billion.