List Of Kenyan, Foreign Companies That Laid Off Employees In 2023

• The Central Bank of Kenya (CBK) CEO survey reported that 26.3% of employers expect to cut jobs by the end of December 2023
• Federation of Kenya Employers (FKE) report showed that 7,000 or 3% of formal workers lost jobs between October 2022 and November 2023, with 40% of employers planning further job cuts
• Employers who laid off workers cited the high cost of doing business, exacerbated by increased taxation in the financial year 2023/24

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

The number of companies laying off workers over the increased cost of operations in Kenya continues to grow.

The CBK CEOs survey showed that 26.3% of employers expect to reduce their workforce before the end of December 2023.

Why Kenyan companies are firing workers

FX Pesa lead market analyst Rufas Kamau noted the weakening shilling, high taxes, and unfriendly economic policies have had a huge impact on many business operations.

"I suspect the weak consumer power, high fuel costs, and rising interest rates have a significant impact on the companies' revenues. Taxes will end up hurting the tax base," Kamau explained exclusively to TUKO.co.ke.

About 40% of Kenyan employers plan to reduce their workforce after laying off 70,000 workers between October 2022 and November 2023.

Below is a list of companies that fired workers in 2023.

1. Mastermind Tobacco

Mastermind Tobacco Kenya is the latest company to lay off workers.

The company announced more than 1,000 job cuts in December 2023.

The cigarette manufacturer ran into liquidity challenges after losing a tax case against the Kenya Revenue Authority (KRA).

2. Buzeki Entreprises

Buzeki Enterprises, comprising Bunoil Limited, Koima Motors Limited, Transtruckers Logistics Group Limited, Buzeki Insurance Limited and Buzeki Fleet System Management Limited, announced plans to lay off workers.

The company cited poor economic policies by President William Ruto's administration.

3. Twiga Foods

Early in May 2023, over 100 sales agents lost their jobs at agri-tech firm Twiga Foods.

In August 2023, fintech announced a fresh round of employee layoffs as it sought to cut its operational costs.

"We regrettably declare some roles redundant across the organisation in full compliance with applicable labour laws. The review has further necessitated the resizing of its operating model across its regions," said Twiga Foods in a statement released on Saturday, August 19

4. Copia Kenya

Copia Kenya laid off 25% of its workforce, about 350 workers, due to the tough economic environment.

The move was aimed at enhancing profitability for the Kenyan e-commerce firm.

5. De La Rue

Kenya's banknote printer De La Rue announced plans to cut down operations as market demands slowed.

The multinational firm cut about 300 jobs by March 2023 following reduced orders from the Central Bank of Kenya (CBK).

The firm revealed that CBK has not placed any order and does not expect it for the next 12 months.

6. Brookside Ltd

In July 2023, Brookside Limited scaled down operations after it failed to get an export permit from the Kenyan government.

The dairy processing company owned by the wealthy Kenyatta family said it had no choice but to retrench half of its employees.

7. Unga Group

Unga Group revealed plans to cut its workforce over the rising cost of operations.

The Group said its businesses have been adversely affected by the tough economic environment in Kenya.

The company noted that the worst-affected business is Unga Limited, whose sales have dropped significantly.

8. Spotify

In December 2023, music streaming giant Spotify announced plans to reduce its number of employees by around 17% in a bid to cut costs amid "dramatically" slower economic growth.

This represents around 1,500 workers who will leave the company.

Which companies will fire workers in 2024?

Meanwhile, the Postal Corporation of Kenya, commonly referred to as Posta, plans to fire 504 employees in February 2024.

The Standard Media Group has introduced a voluntary early retirement scheme targeting to reduce its wage bill.

Business Daily reported that at least 870 jobs are at risk after Kwale-based Base Titanium announced it will exit the Kenyan market in 2024.