This archive report was first published on 6 January 2020.
Published on January 6, 2020, Sameer Africa, a tyre distributor, is set to lay off 52 employees from February 1, exacerbating the job crisis in Kenya's corporate scene.
The company has been struggling to survive despite changing its strategy in 2016, when it stopped local manufacturing of its key tyre brand Yana and opted to outsource to Asia.
Sameer now 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, the company's board of directors has resolved to restructure the company further by aligning its operations to become more of a trading and distributorship outfit.
Acting managing director Peter Gitonga stated in the notice that approximately 52 employees drawn from both management and unionisable cadres will have their employment contracts terminated.
Sameer'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, but said he could not immediately divulge the details on how much will be spent on the retrenchment.
He stated, 'We have been restructuring since we changed the business model from manufacturing to retail. This comes with adjustments.'
Sameer 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.
