This archive report was first published on 28 October 2019.
Published on October 28, 2019, a report revealed that at least 7,000 Kenyans had lost their jobs in 2019 alone in a spate of mass layoffs that affected more than 10 companies in the country.
Companies from nearly all sectors, including finance, telecommunications, agriculture, manufacturing, energy, and ICT, were affected by the layoffs.
The affected companies cited restructuring, reduced profits, a hostile business environment, and high costs of labor and production as reasons for the retrenchment of workers.
Companies Affected by Mass Layoffs ¶
- Air Afrik: The aviation company laid off 200 workers from Kenya and Sudan in October 2019, citing massive losses and blaming its financial partner.
- Finlay Flowers: The Kericho-based flower farming multinational announced the closure of two farms by December 25th, 2019, citing oversupply in Europe and other factors, affecting over 1,000 workers.
- SportPesa: The leading betting company halted its operations in Kenya in 2019, sending home at least 400 workers, citing the government's hostility and stringent taxation and regulations laws.
- Betin: The betting company's main competitor, Betin, also faced a similar predicament, announcing the closure of its business operations in Kenya in September 2019, affecting at least 2,500 people.
- Andela: The US-headquartered IT-innovation hub laid off 175 of its junior workers in September 2019, citing a shift in market demand towards more experienced software engineers.
- Ola Energy: The oil marketer implemented a voluntary early retirement scheme affecting close to 200 workers.
- East Africa Portland Cement: The cement manufacturer announced a reorganization plan in August 2019, declaring its entire staff redundant and requiring them to reapply for their jobs.
- Telkom Kenya: The telecom company announced the retrenchment of 575 employees prior to the planned merger with Airtel in August 2019.
- Stanbic Bank: The bank announced the planned retrenchment of 88 workers in an early retirement scheme in 2019, expected to conclude by November.
- East African Breweries Limited (EABL): The beer company planned to lay off 100 employees in its Nairobi Centre, relocating its business service Centre from Nairobi.
These mass layoffs had a significant impact on the Kenyan workforce, with many workers losing their jobs due to factors beyond their control.
