In 2019 more than five companies have announced plans to retrench a number of employees to reduce the costs on wage bills.
This trend is a clear indication that most of the employees will be rendered jobless., which will, in turn, lead to an increase in the rate of unemployment in Kenya.
Even with the low employment rates in Kenya, companies are still retrenching employees.
According to a survey by Kenya Association of Manufacturers,(KAM), there are about 1000 manufacturers in Kenya, and at least 330 (33 percent) have plans to lay off employees in the coming months. Employee retrenchment is a trend for companies and it will still continue.
Out of the 1,000 manufacturing firms, only 240 are planning to take in employees in 2019.
The KAM survey shows that manufacturing firms are currently concentrating on marketing and sales promotion methods while trying to avoid costs on payrolls.
It is quite unfortunate for the blue-collar workers (semi-skilled and the unskilled) as the retrenchment mostly targets them at 60 percent.
Here are some companies that have plans to retrench their employees in 2019.
The company is reported to be losing a total of 8 million shillings on a daily basis.
To turn back its misfortunes, the company announced that it will fire all its employees from all levels.“This process will, unfortunately, render jobs redundant in the spirit of fairness and in regard to the service rendered by the affected staff, this exercise will be done within the provision of section 40 of employment act,” said Ag Managing Director Steven Kyalo Nthei. East African Breweries Limited (EABL) The parent company of East African Breweries Limited (EABL) announced that it will retrench about 100 employees who are based in Kenya.Diageo, which is based in London, made it clear that it will retrench employees mostly from human resources and financial offices. The layoffs will be done gradually and are expected to end by March next year(2020). Telkom Kenya. The telco company is one of the companies planning to retrench the highest number of employees.It announced that at least 575 workers would be rendered redundant in the yet to be approved merger between the company and Airtel Kenya. Stanbic Bank Kenya The lender has different plans for its employees. It has offered an early retirement scheme that is to be joined voluntarily. It targets to retrench almost 200 workers to help cut wage bills for the institution.The employees have been […]