This archive report was first published on 5 January 2020.
On January 5, 2020, Business Daily reported that tyre distributor Sameer Africa would start laying off 52 employees from February 1, as it struggles to survive.
Sameer Africa has been facing challenges since it changed its strategy in 2016, when it stopped local manufacturing of its key tyre brand Yana and opted to outsource to Asia.
The company intends to close various tyre centres and offices across Kenya and release employees in batches between February 1 and the end of April.
According to a notice to the Nairobi County labour office, acting managing director Peter Gitonga stated, 'Arising from the foregoing, the board of directors has resolved to restructure the company further by aligning the company operations to become more of a trading and distributorship outfit.'
Gitonga also noted that approximately 52 employees drawn from both management and unionisable cadres would have their employment contracts terminated.
Sameer Africa's group headcount has been declining in recent years, shrinking by 120 from 288 staff in 2017 to 168 at the end of 2018.
Chairman Erastus Mwongera confirmed the notice, stating that the company has been restructuring since changing its business model from manufacturing to retail.
Sameer Africa widened its net loss 15.8 times to Sh182.8 million in the first six months of 2019, with stock-outs and counterfeit products complicating its recovery effort.
