Thousands to loose their jobs in Nairobi’s closure of clubs and restaurants.
The pubs and restaurant association of Kenya , chairman Michael Muthami has estimated that half of the full-time staff employed in affected bars, summing up to thousands to loose their jobs.
Muthami stated,”PERAK further estimates that 100 per cent of temporary employees will not be required due to the reduction of operations within clubs. Some 73,000 jobs representing Sh1.6 billion monthly income will be lost in Nairobi.”
He stated that the situation will be likened to to 2019, during the peak of corona, where businesses were shut down.
He stated,”The decline was evidenced by a 6.4 per cent drop in domestic excise tax collection according to KRA’s 2019-2020 full year performance results.”
“In addition the ban will have a negative value chain impact on small holder farmers and local suppliers who provide raw materials for manufacturing,” he added.
He further added that employees in the entertainment industry in Nairobi jointly add a total of 1.9 jobs.
He stated,”For each person the industry employs directly, 32 indirect jobs are generated in the wider economy, that is 1,920,000 jobs within the bar eco-system in Nairobi alone.”
“It is estimated that each of the 400 night clubs in Nairobi employs 50-80 full time staff (total average of 26,000 people) and 20-30 temporary employees.”
“Therefore, full time and temporary employees in total earn a total of Sh780 million and Sh100 million every month respectively.” He added.
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