Friday, June 7, 2024 – More Kenyans are set to lose jobs after a Canadian company operating in Mombasa announced that it is closing part of its operations following harsh tax conditions.
The firm
is the hub for East Africa operations of the overseas packaging
manufacturers of corrugated cartons and paper sacks.
In a
press statement, the packaging company cited that it will be shutting down its
Paper Sack Division based in Shimanzi Mombasa County.
The
company further cited that it needed to close some of its operations to remain
profitable following the implementation of the Finance Act 2023.
Further,
the firm detailed that following the closure of the operations they would have
to let go of over 70 members of their staff who had been declared redundant.
The
company also cited that the closure of the operations was informed by the need
to mitigate potential losses which were occasioned by the increased cost of
doing business.
The CEO,
while announcing the folding of the operations, detailed that the
implementation of the Finance Bill of 2023 played a major role in the creation
of a steep taxation regime for the company.
The closure
of the firm falls on the backdrop of a warning issued by the Kenya Association
of Manufacturers who have cited that their members would flee the country
following a harsh business landscape.
According
to KAM, if the Finance Bill 2024 is passed as it is, the business
landscape in the country may continue to plummet creating more job losses.
The Kenyan DAILY POST
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