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Chairperson of President Ruto's Council of Economic Advisors, David Ndii, has responded to a viral letter announcing a redundancy exercise by G4S Kenya Limited.
This interaction comes in the wake of public debate sparked by lawyer Willis Otieno's remarks, which drew a direct connection between economic well-being and the availability of basic commodities such as "unga" (maize flour).
On social media, Willis Otieno had criticised Ruto's administration citing the hard economic times which contrast the head of state's argument that prices of basic goods have decreased.
Otieno shared G4S's redundancy notice to underline the economic strain faced by businesses and their employees.
David Ndii, in turn, defended the government's approach, emphasising that the health of an economy should be assessed using macroeconomic indicators rather than isolated incidents.
"In a market economy, businesses start and fail every day. Some hire, some fire. Some grow, some shrink. We measure economic performance by aggregates, i.e., macro-level outcomes," Ndii stated.
G4S Announces Redundancy Plan
Amid this backdrop, G4S Kenya Limited officially announced a large-scale redundancy exercise set to affect hundreds of employees across the country.
In a "Notice of Redundancy" dated November 4, 2024, the company cited "harsh economic challenges" as the primary driver of this decision.
Declining revenues and increased operational costs have left the company no choice but to restructure its workforce to maintain sustainable business operations.
According to the notice, approximately 400 employees across management and unionisable positions will be affected.
The redundancy process is expected to be conducted between November 2024 and April 2025, with employees from multiple locations across Kenya impacted.
G4S stated its commitment to adhering to all legal requirements under the Employment Act, 2007, Section 40 (1), which outlines the procedures for redundancy.
The redundancy announcement by G4S underscores the ongoing challenges faced by businesses operating in Kenya's current economic climate.