Schneider Electric Kenya is planning to sack 50 Kenyan employees as costs of doing business in Kenya skyrockets

Schneider Electric Kenya, a subsidiary of French multinational Schneider Electric, is set to retrench some 50 employees in what it has attributed to a tough business environment.
Schneider entered the Kenyan market in 2015 when it acquired Power Technics Limited, a company founded by businessman Naresh Mehta, in a deal that was estimated at more than Sh1 billion.

Schneider Electric Kenya, a subsidiary of French multinational Schneider Electric, is set to retrench some 50 employees in what it has attributed to a tough business environment.

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“These transformations have been brought about due to a host of macroeconomic reasons such as deteriorated market conditions, government freezing projects, challenging investor conditions due to high prices of resources and mounting pressure to optimise costs,” the Schneider regional general manager Edouard Heripet wrote to the affected employees in a November 9, 2018 termination notice seen by the Business Daily.

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Mr Heripet added that the company needs to take timely action to adopt operations to a more lean and efficient organisation to maintain profitability.

“If the proposed redundancy becomes effective, the proposed dues will be payable to you on the effective date of termination.” Said Mr. Heripet.

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Schneider entered the Kenyan market in 2015 when it acquired Power Technics Limited, a company founded by businessman Naresh Mehta, in a deal that was estimated at more than Sh1 billion.

Power Technics had been a local distributor of its products until the acquisition.

Schneider Electric Kenya becomes the latest firm to cut jobs in an economy beset by rising costs of doing business and reduced lending to the private sector, among other headwinds.