Friday, February 2, 2024 - Employees of a renowned manufacturing company in the country are staring at job losses after the industry announced the termination of several of its employees.
In a notice, the company's management revealed that the
company had made the decision due to the tough business environment and
rising inflation levels that have made it difficult for the company to sustain
its current staff levels.
"After careful consideration, there are positions which
will not be required.
"This was an extremely tough decision, and we do
understand the impact this will have on the employees and their families,"
read part of the notice.
The employees have been advised to prepare for termination
with the process set to begin on March 1, 2024.
The company has also adopted a new business strategy geared
at increasing productivity and guaranteeing longevity in the market despite the
current tough economic times.
In the notice, the company however outlined that the
employees will be eligible for their final dues as required by the Employment
Act.
According to the law, the employees are entitled to notice
pay, severance pay, and pension dues, among other dues. Employees who owe the
company on the other hand will also face deductions.
In the past months, companies employing hundreds of Kenyans
have raised alarm over rising inflation and increased taxation by President
William Ruto’s regime which have made it harder to run businesses in the
country.
Last week, a maize company shut down its operations and
announced it was selling its property for Ksh400 million.
A private school in Nairobi also closed down last year, due
to the tough times burdening the business community. The sudden closure left
students and their parents stranded.
A survey conducted by the Central Bank of Kenya in December
predicted that the economy will worsen forcing more companies to lay off
workers.
Mass layoffs will be announced between January and April
2024.
The Kenyan DAILY POST.
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