List of companies that have retrenched, fired employees and closed down in 2019

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List of companies that have retrenched, fired employees and closed down in 2019

As 2019 comes to a close, this might have been one of the toughest year for Kenyans due to hard economic times coupled with retrenchment and mass firings by companies in the country.

Most companies/organisations retrenched or fired on grounds of lack of making profits and also citing harsh environment to operate in the country.

The moves saw thousands of Kenyans rendered jobless and just to highlight the gravity of things ,President Uhuru Kenyatta recently held a private meeting with Parastatal bosses at State House where he reportedly ordered them to release Ksh 30 Billion due the low cash flow in Kenya.

Pulselive.co.ke has compiled a list of the companies that retrenched or sent their employees home.

Here is the list;

Mediamax

Kenyatta owned media group- Mediamax issued a redundancy notice on 30th September 2019.The notice came to an end on October 30, a day that saw several top editors going home.

Earlier reports had indicated that the company would send home up to 160 employees across all divisions.

Sportpesa

Sportpesa, Kenya's largest sports betting firm, announced that it had halted operations in Kenya citing hostile regulations.

The embattled betting firm then sent home all its 400 employees in the aftermath of its lost battle with the government over renewal of its license and heavy taxation.

Telkom Kenya

In August, Telkom Kenya announced plans to lay off 72 percent of their employees ahead of its proposed merger with Airtel Kenya. The move would have 575 workers sent home.

We hereby give you one month’s notice, with effect from the date of this letter of our intention to terminate the employment of approximately 575 of our employees on account of redundancy as a result of the intended combination of Telkom Kenya’s mobile, enterprise and carrier services businesses with Airtel Networks Kenya,” read a statement from Telkom Kenya.

Silverstone air

Silverstone Air in November issued a letter to its staff, notifying them that they had been sacked.

In the statement seen by Pulselive.co.ke, Silverstone told their staff that the company had become redundant hence why they were being let go.

According to the company, the decision by the Kenya Civil Aviation Authority (KCAA) to suspend Silverstone Air's Dash 8 fleet had cost them losses due to flight disruptions.

East African Portland Cement Company (EAPCC)

East African Portland Cement (EAPCC) declared its entire workforce redundant in August as they fired them and asked them to reapply under new terms.

The firm said it was making losses of up to Sh8 million daily and it couldn’t take it anymore.

Stanbic Bank

CFC Stanbic Bank also announced plans to lay off 255 employees, to reduce the company’s cost.

In a Memo, the company offered permanent and pensionable employees a voluntary early retirement package, which they were at liberty to accept or decline.

East African Breweries Limited (EABL)

East Africa Breweries Limited was in August reported to have plans to dismiss up to 150 employees after parent company Diageo moved its consultancy and key functions out of Kenya.

The British multinational outsourced all its financial, accounting and analytical work to India and Hungary.

Reports said that the 150 employees are from human resource and finance shared services. The layoffs will take place in December and March 2020.

Ola Energy

Oil marketer Ola Energy announced that it will lay off workers in a voluntary early retirement exercise.

In the announcement, Kenya General Manager Millicent Onyonyi confirmed the layoffs but did not disclose the number of staff that would be affected.

Betin

Betting firm Betin announced that it would fire 2,500 employees.

Betin sent the sad news to its members of staff through an internal memo signed by the MD Gamcode Limited.

The memo cited lack of an operating license and high taxation to have greatly affected its operations causing massive losses.

The company has since ceased operations in Kenya.

Sanlam Kenya

Sanlam Kenya Plc opted for job cuts to either protect profit margins or stay afloat.

The financial and insurance firm gave its staff a week to apply for voluntary early retirement as part of its cost cutting measures.

The firm used a cost-cutting strategy aimed at trimming operating costs by more than Sh200 million.

Finlays

Flower company James Finlay announced 1,700 workers would lose jobs when it closes down farms, citing high labour costs and poor prices.

In a statement, the company said it would close the Chemirei and Tarakwet farms by December 25.

Andela

Andela, announced plans to let go of approximately 420 junior engineers and staff to deliver stronger engineering support for its clients. 250 of the employees would come from its Nigeria and Uganda hubs with 170 from Kenya.

Radio Africa

Radio African Group CEO Patrick Quarcoo announced that the company would let go some of their employees after failing to meet their expected financial targets.

In a staff circular, the CEO issued a one-month redundancy notice, which sets the stage for a mass layoff mid-December or even earlier.

Unconfirmed reports say that the number of employees to be laid off will hit the 100 mark.

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