Copia Fires Over 300 Employees, Cites Harsh Economic Conditions: "Restructuring Process"

• The implementation of the Finance Act 2023 amid harsh economic conditions led to job losses as taxes bite
• While disclosing it would fire about 25% of its workforce, Kenyan e-commerce start-up Copia noted it was restructuring
• This came after Brookside Limited scaled down operations after it failed to get an export permit from the Kenyan government

Kenyan e-commerce start-up Copia has announced it will dismiss over 300 employees.

The company cited tough economic conditions following the implementation of Finance Act 2023, which introduced a raft of taxes.

The number of affected workers will be about 350 out of its workforce of 1800.

“This restructuring process will likely impact less than 25% of the permanent workforce and will be undertaken in full compliance with Kenyan labour law and with sensitivity to all employees affected by the process," it stated as reported by Citizen Digital.

According to Tech Trends, the company explained it was restructuring to stay afloat.

"Given that the economic downturn and the constrained capital markets are likely to continue for some time, Copia is optimising some key processes in its operations in Kenya to provide a better service to its customers and to drive sustained operating profitability. These changes require Copia to undergo a limited restructuring of its operations," it added.

Brookside fires half of its staff

In related news, Brookside Limited scaled down operations after it failed to get an export permit from the Kenyan government.

The dairy processing company owned by the wealthy Kenyatta family said it had no choice but to retrench half of its employees.

Brookside Uganda human resources manager Winnie Mirembe Mugabi revealed failure to get the permit denied them an opportunity to access 75% of its market in Kenya.

Buzeki announces job cuts

In June, Uasin Gishu businessman Bundotich Zedekiah Kiprotich popularly referred to as Buzeki, announced he fired some of his employees immediately.

The billionaire owns several companies, including Buzeki Enterprises, Bunoil Limited, Koima Motors Limited, Transtruckers Logistics Group Limited, Buzeki Insurance Limited and Buzeki Fleet System Management Limited.

In a tweet shared on his official Twitter handle on Wednesday, June 21, the businessman criticised the Kenya Kwanza Alliance government for imposing too many taxes on Kenyans.