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"id": 1524049,
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"speaker_name": "Sen. Murgor",
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"content": "The committee visited Ashton Apparels in Mombasa West on Wednesday, 19th June 2024 and Umoja Slippers, a local private company and Best Line Garments, EPZ, both in Kilifi County on Thursday, 20th June 2024. Following the visits, the committee observed that EPZ was created by an Act of Parliament known as the EPZ Act Number 12 of 1990, which provides for the establishment of export processing zones and the Export Processing Zones Authority (EPZA). The EPZ has attracted physical and procedural incentives to ensure low-cost operations for export-oriented businesses. These zones are governed by EPZA. Those main roles include development, regulation and administration of the zones and is a state corporation under the Ministry of Investments, Trade, and Industry. Export-oriented companies operating in these zones are licensed by the EPZA. Therefore, subject to its policies and procedures. Additionally, these companies, which employ Kenyan citizens as employees are bound by Kenyan labour laws, which include the Labour Relations Act and Employment Act, the Work Injury Benefits Act, Occupational Safety and Health Act, among others. Article 41 of the Constitution solidifies labour relations by guaranteeing labourers various rights, including fair remuneration, safe and healthy working conditions, reasonable working conditions - form, join, participate in activities and programmes of the trade union and go on strike The committee found out that EPZ companies visited complied with the laws of the land and maintained wages to their workers. However, the EPZ companies had minimal corporate social responsibility programmes. The employees also complained that they were paid lower salaries than their co-workers who performed the same task. They stated that foreigners performing similar tasks were paid higher salaries than they were. In light of the above and findings, the committee made the following recommendations- (1) Immediately establish an Export Zones Wages Council in line with Section 43 of the Labour Institutions Act, Cap 234, to take care of the special categories of workers and report to the Senate within a month of filing this report. (2) Review and publish a wage order that is specific to export processing zones workers and report to the Senate within six months of filing of their report. (3) In the spirit of their labour and practices of equal pay for equal work done, investigate claims of EPZs saying foreigners doing similar jobs to locals earn EPZ higher wages and report to the Senate within three months of tabling of this report. (4) The Cabinet Secretary in charge of trade investments and industry ensures that the government gets the best deal for the citizens of Kenya in terms of enhanced wages. (5) On Corporate Social Responsibility programmes and environment reclamation programmes, currently there is a favourable business environment for EPZ nationally and in the counties. Therefore, the national Government through the EPZA should incorporate the county governments in setting up the export processing zones to ensure that counties benefit in terms of job opportunities and infrastructure development and corporate social responsibility programmes. Mr. Temporary Speaker, Sir, I wish to thank the Senators who availed themselves for this inquiry visit. I also thank the office of the Clerk of the Senate for the facilitation The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}