This archive report was first published on 14 January 2020.
Sasini Group, one of Kenya's 'Big 6' tea producers, has cut its workforce by 240 workers, citing increased wage claims as the reason for the drastic measure.
According to the company's financial records, the firm recorded a net loss of KSh337.7 million for the period ended September 2019, a significant blow to its financial stability.
As a result of the increased wage claims, the company was forced to implement a 9% pay increase for its workers in 2019, in addition to the 7% pay increase in 2016 and an 8% pay increase in 2018 and 2019.
With staff costs rising by 11.8% to KSh219.7 million during the period under review, the company was left with no choice but to halve its dividend to KSh0.5, a significant reduction from its custom of KSh1 dividend payout split equally between interim and final payout.
Located in Nairobi, Sasini Group is a member of the Sameer Group of Companies and is listed on the Nairobi Stock Exchange.
