EPZ management reassures security of 8,000 jobs

The Export Processing Zone Authority (EPZA) management has allayed fears over massive job losses at the Mombasa-based industrial zone.

In a letter dated November 28, the export zone instead reassured its employees that their jobs were secure, saying the named companies feared to close down this calendar year will instead be under new management.

EPZA further says workers in the affected companies will not lose entitled benefits as captured in their previous contracts as guided by the labour laws.

“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.

Recently, fear and uncertainty 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 says the agreement of change of the companies’ investors which was overseen by the Ministry of Labour and Social Protection was mutual and was endorsed on October 25 as required by the Ministry of Investments, Trade and Industry.

According to the export zone CEO Hussein Adan, the industrial zone is committed to creating, availing and retaining 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 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.

EPZA companies are among the 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 extend to pharmaceuticals and food processing.

The government in May announced that it is set to establish five more EPZ zones in the country at a tune of approximately Ksh.1 billion.