This archive report was first published on 24 November 2019.
Dark Christmas Looms as Kenyans Face Job Loss Agony ¶
As the economy struggles to recover, thousands of Kenyan workers are bracing themselves for a bleak Christmas, with companies announcing fresh layoffs and cost-cutting measures.
On October 24, 362 employees of Sportpesa received an email informing them that they were out of a job, just three months to Christmas. The news sent shockwaves through the company, leaving employees stunned and desperate to come to terms with the sad news.
‘We were in the middle of celebrating a colleague’s birthday when our phones beeped simultaneously. It was an email to all and it changed the mood in the room. The smiles dropped and we stared at each other, desperately trying to come to terms with the sad news,’ Serah Mugoi, a former customer care representative at Sportpesa, recalls.
The layoffs are part of a larger trend of job losses and cost-cutting measures in the private sector, as companies adapt to the realities of an economy that is not showing signs of recovery. The government too is evaluating ways of bringing down the wage bill, which has risen to uncontrollable levels.
While the government has ruled out retrenchments, it plans to reduce its wage bill by Sh182 billion through a freeze on employment, creating anxiety among civil servants who are on contract and fear their terms may not be renewed.
Aside from layoffs and cost-cutting measures, companies are also dishing out little to no dividends to their shareholders. On the Nairobi Securities Exchange (NSE), at least 20 listed firms have warned their profits this year will tumble by more than 25 per cent.
Mobile lender Tala joined the fray, with its management announcing impending re-organisation in Kenya just weeks after shutting down Tanzania operations. However, the lender said ‘any departures were done in the course of normal business’.
Other firms that have sent workers home recently include East African Portland Cement Company, East African Breweries Ltd, Telkom Kenya, Securex, Stanbic Bank, Betin, Sanlam Kenya, and Ola Energy. The media industry has also been hit hard, with private sector firms and the government reducing advertising, resulting in media houses laying off staff.
Radio Africa, whose stable includes The Star newspaper, Classic FM, and Kiss FM, recently announced plans to declare some employees redundant. Mediamax, whose stable includes K24 and the People Daily newspaper, also laid off about 160 people.
As the economic woes deepen, Kenyans are bracing themselves for a dark Christmas, with many uncertain of whether they will have their jobs come January.
