Copia Kenya To Fire More Than 1,000 Workers Over Financial Constraints

• Copia Kenya, an e-commerce start-up, continues to carry out restructuring of its operations across the country
• The company took the steps following a tough economic environment, coupled with financial distress
• Copia announced a reduction of its workforce as it looks for additional funding to restructure its business operations

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.

More than 1,000 Kenyans will lose their jobs as Copia Kenya announces redundancies.

The e-commerce start-up firm warned that the current restructuring process could result in the shutdown of its operations.

How many jobs will Copia cut in 2024?

In a notice to employees dated May 16, 2024, the company said it is exploring all avenues to secure additional funding but remains at risk of downsizing or ceasing operations entirely.

"While we are working hard to try and overcome the hurdle, it is important to highlight that uncertainties lie ahead. It is very likely that there will be a reduction in our workforce and about 1,060 roles could be eliminated," said Tim Steel, Copia chief executive officer.

Steel noted that the services of these job holders will be rendered superfluous after one month of issuance of the notice.

The CEO further warned that should the company shut down, all staff will be at risk of being terminated.

Why is Copia Kenya reducing its workforce?

The company cited increased operational costs exacerbated by tough economic environment and financial constraints.

Copia said it took the measure after establishing that payment of workers salaries and wages could be at risk.

The firm received KSh 5.6 billion from investors to take its business across East Africa in 2022.

In November 2023, the company received $107 million (KSh 13.9 billion) in funding as part of the restructuring process.

However, according to the Fintech Association of Kenya, this has not been enough to solve Copia's financial challenges, even after exiting Uganda's subsidiary to focus on the Kenyan business.

Has Copia fired workers before?

In August 2023, the e-commerce company. announced plans to cut its workforce.

Copia cited tough economic conditions following the implementation of the Finance Act 2023, which introduced a raft of taxes.

The number of affected workers in the restructuring process was about 350 out of its workforce of 1800.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke