Brookside, Other Kenyan And Foreign Companies That Laid Off Workers In 2023

• Several Kenyan and foreign companies fired their employees in 2023, citing tough 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

Hundreds of Kenyans have been rendered jobless since the beginning of 2023, as some downsized while others exited the market.

Why companies are firing employees

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

In an exclusive interview with TUKO.co.ke, he noted that companies and the super-rich fled to countries with stable taxation and friendly economic policies.

"The super-rich people find comfort in a country with a stable taxation policy, currency, and a growing economy. The current administration's progress is changing tax policy rapidly, mismanaging the currency and weakening economic growth," Kamau expounded.

Kamau noted the implementation of the Finance Act, which introduced a raft of taxes, including the doubling of Valued Added Tax (VAT) on fuel, will work against the government.

"The taxes will end up hurting the tax base. Foreigners will exit and invest in other countries. By the time we realise that tax revenues are lower and go for the eventual repealing, the tax base will have shrunk," he said.

Which companies laid off workers?

1. Buzeki announces job cuts

In June, Uasin Gishu businessman Bundotich Zedekiah Kiprotich popularly referred to as Buzeki, announced the firing of some of his employees with immediate effect.

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 X handle on Wednesday, June 21, the businessman criticised the Kenya Kwanza Alliance government for imposing too many taxes on Kenyans.

"Due to the rise in VAT on fuel from 8% to 16%, we are now officially DOWNSIZING with immediate effect. The current administration seems to lack a plan for job creation and is SOLELY focused on collecting revenue for EXPENDITURE. All OLD trucks, including those with Euro 3 and below, will be sent to the scrap yard," Buzeki said.

2. Why Twiga Foods sacked sale agents

At the same time, over 100 sales agents lost their jobs at agri-tech firm Twiga Foods over the company's poor performance amid stiff competition in the market.

Twiga Group chief executive officer Peter Njonjo revealed they sacked 130 employees in May.

"We had a total of 440 agent territories, of which 50 were inactive. Making a net of 390, of these 130 were performing below expectation and were rationalised. The 130 left in the last 45 days...from the start of May. They were inactive. We had to part ways with them," Njonjo said as reported by Business Daily.

On Monday, August 21, Twiga Foods announced a fresh round of employee layoffs to cut operational costs.

The e-commerce food distribution firm said the tough economic environment affected people's purchasing power.

3. Copia lays off over 300 employees

In August, Kenyan e-commerce start-up Copia announced the dismissal of over 300 employees. The company cited tough economic conditions.

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

"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," it stated.

4. De La Rue's job losses

British company De La Rue cut down operations in January as market demands slowed.

The multinational firm cut about 300 jobs by 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.

5. Brookside fires half of employees in Uganda

In July, 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.