Tuesday, March 12, 2024 – Another multi-billion company has exited the Kenyan market due to the high cost of doing business that has been exacerbated by President William Ruto’s bad economic policies.
The multi-billion beauty company that distributes weaves and
hair extensions within the country left Kenya after selling a portion of
its assets to a newly incorporated company.
This was announced by the Competition Authority of Kenya
(CAK) on Monday, February 11, in a statement approving the sale.
CAK was involved in the sale due to a legal requirement that
mandates the Authority to be involved in transactions where the combined
turnover or assets, whichever is higher, is over Ksh1 billion.
With the sale expected to go through, hundreds of Kenyans
who were working in the company are now set to be retrenched.
“The transaction will elicit negative public interest
concerns. Specifically, it will lead to the loss of 652 jobs which is
equivalent to 30 per cent of the target's 2,171 employees,” CAK revealed in its
statement.
The company until its sale was controlled by a consumer
products company registered in India.
To cushion 70 per cent of workers who will now be working in
the new company, CAK directed that they should not be subjected to a salary
reduction in 12 months.
According to CAK, in 2022, the company controlled Ksh4
billion of the Ksh80 billion revenue in the wigs and weaves industry.
The Kenyan DAILY POST
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