If you thought the year 2020 will be friendly to both the employed and the job seekers, you better think again because this year seems determined to “end in tears” as many companies prepare to lay off their employees.
Car tyre distributor Sameer Africa has announced that it will be laying off 52 employees starting the 1st of February 2020 (next month) as it struggles to sustain its business.
Sameer Africa has been struggling to remain afloat since the year 2016 when it stopped manufacturing the Yana tyre brand and opted to outsource from Asia.
The company says it is planning to close various centers across Kenya and send home employees in steps starting the month of February to April this year.
“It is, therefore, contemplated that approximately 52 employees drawn from both management and unionisable cadres will have their employment contracts terminated,” said Peter Gitonga, acting managing director at Sameer Africa.
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Between 2017 and 2018, Sameer Africa sent home 120 employees, reducing its headcount from 288 to 168 as the company continues to cut on costs as a result of the high cost of doing business in Kenya.
“We have been restructuring since we changed the business model from manufacturing to retail. This comes with adjustments,” said Erastus Mwongera, Chairman of Sameer Africa.
It is estimated that in 2019, more than 25,000 Kenyans lost their jobs as various companies either shut down operations in Kenya or laid-off employees to remain afloat. Many companies that have closed down or fired employees have blamed the biting business environment in Kenya as well as the cost of doing business.
The government has remained mute over the increasing number of Kenyans who are losing their jobs, joining hundreds of thousands of others who are still seeking employment opportunities.
The unemployment rate in Kenya stood at 43.5 percent in 2019 with most of the unemployed being the youth, who also make up the majority of the population. READ : This Is How Leaders From A Shithole Country Behave More Articles From This Author
