List Of Businesses That Closed Shop In Kenya In 2023

• Several Kenyan and foreign companies exited the market in 2023 amid harsh economic conditions worsened by high taxes
• Kenya's banknote printer De La Rue announced the closure of its Nairobi unit due to the low market demand
• Builders retail store in Karen Nairobi announced its exit from the Kenyan market, bowing to poor economic pressure

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

In 2023, Kenya experienced a notable shift in its business landscape, witnessing the closure of several prominent establishments across various industries.

The closure of the businesses not only underscored the dynamic nature of the market but also raised questions about the adaptability of enterprises in the face of emerging trends and economic pressures.

Which businesses closed shop in 2023?

1. Why De La Rue exited the Kenyan market

Kenya's banknote printer De La Rue announced the closure of its Nairobi unit due to the low market demand.

The multinational firm cut over 300 jobs in March 2023 following reduced orders from the Central Bank of Kenya (CBK).

The firm revealed that CBK had not placed any order and does not expect it for the next 12 months then.

"Government is not currently printing any new notes. Those of us who were dealing with notes left. The company received the last order of banknotes up to September 2022,” said former employees, quoted by Business Daily.

It reportedly spent over KSh 2.7 billion to lay off staff.

2. Why Africa Oil quit Kenya

Africa Oil quit the Kenyan market after settling tax arrears valued at over KSh 2 billion.

The Canadian company exited the Turkana oil project after relinquishing 25% of its shares to Tullow Oil.

In quarter two 2023, the company completed its negotiations on the penalties and interest relating to the historical tax dispute and settled historical partner and other disputes resulting in payments of KSh 2.17 billion," Africa Oil stated.

3. MarketForce

MarketForce, a B2B e-commerce company based in Kenya, shut down its operations in four out of its five markets, including its home country.

MarketForce is the proprietor of RejaReja, a mobile application that facilitates direct ordering of fast-moving consumer goods (FMCGs) by informal retailers from distributors and manufacturers, alongside providing access to financing.

Following the company's decision to discontinue its services in Kenya, Nigeria, Rwanda, and Tanzania, MarketForce's offerings will now only be available in Uganda.

4. Builders

Builders retail store in Karen Nairobi announced its exit from the Kenyan market, bowing to poor economic pressure.

The chain store, located at the Waterfront Karen, made the announcement in February following the exit of brands like Shoprite and Choppies.

The company has been in the country for less than three years, since its entry in August 2020.

Economist Ken Gichinga said foreign retailers perform poorly in the Kenyan market because they lack the aspect of connecting to Kenyan consumers.

“It really comes down to the ability to localise and connect with the consumer. There is a great need for corporates to now pay attention to consumer and household behaviour through what we call behavioural economics," said Gichinga, an economist at Mentoria Consulting.

5. GlaxoSmithKline (GSK)

In December 2023, GlaxoSmithKline (GSK), a prominent British pharmaceutical company, concluded its operations in Kenya, marking its departure from the country four months after exiting Nigeria.

With almost six decades of operation, GSK had maintained a manufacturing facility in Kenya but has now opted to depend on distributors for the supply of its products to regional markets.

GSK attributed the decision to exit Kenya to sluggish sales.

Which companies sacked workers?

Several Kenyan and foreign companies fired their employees in 2023, citing harsh economic conditions.

Among the firms that laid off workers are British printing company De La Rue, e-commerce startup Copia and agri-tech firm Twiga Foods.

FX Pesa lead market analyst Rufas Kamau cited the depreciating shilling and high taxation as some of the reasons for job losses.