At least 8000 employees of two textile and apparel companies which are winding up operations in Kenya’s export processing zones will be given their full benefits.
The Export Processing Zone Authority (EPZA) Chief Executive Officer Hussein Adan has said the authority will ensure the employees of the two firms, Mombasa Apparel EPZ Limited and Ashton Apparel EPZ Limited which are undergoing change of ownership are treated fairly according to the country’s labour laws.
“EPZA hereby informs and assures the public and the employees concerned that the EPZ companies will not close but undergoing change of ownership. There has been ongoing consultative engagements between all relevant stakeholders,” he said.
Adan said 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, 2023 as required by the Ministry of Investments, Trade and Industry.
“We have put measures to ensure that companies strictly adhere to industrial and labour regulations. All our employees are entitled to sound labor 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,” he added.
EPZA companies are among key industries with a large workforce in the country. EPZA Athi-river branch alone has some 20,000 employees working in various companies which majorly manufacture apparels, pharmaceuticals and food processing.
The government targets to establish five more export processing zones in the country at a cost of Ksh 1 billion.