"My Kenyan Employer Is Retrenching, How Do I Prepare For Life Without A Job?": Expert Advises

• A Kenyan man is in a dilemma after his employer announced massive retrenchment to cut costs amid high taxation
• The 41-year-old, who earns a monthly net salary of KSh 50,000, revealed he had saved KSh 100,000 and sought advice on what to do
• Finance and leadership consultant Susan Mtana advised the man to consider cutting some expenses so that he can save more money

An anonymous Kenyan man wrote:

"I suspect the company where I work is going down financially. There are a few signs, including salary delays, but our bosses insist all is well. However, I feel things will not be good in the near future. I have been saving in the Sacco KSh 4,000 every month and now have KSh 100,000. My net income is KSh 50,000. Please help me prepare for a possible retrenchment. How do I go about this?"

Susan Mtana is a finance and leadership consultant. She has 12 years of experience in financial services, logistics and non-profit industries.

Why you should prepare for imminent job loss

Finance and leadership consultant Susan Mtana noted that a job loss hurts, but the man must accept it and adjust.

She urged him to look for other opportunities by networking to increase his chances of securing another job.

Mtana also encouraged him to cut his expenses and increase his savings.

"First and foremost, it's good to accept that things are not going right and that something needs to be done. Change is, however, painful. In this case, consider the adjustments within your control, e.g., living below the current lifestyle to save more than KSh 4,000 per month. It's time to network more, inform potential employers that you are searching for another opportunity, and keep on applying for jobs," Mtana expounded.

Why you should visit your Sacco

Mtana noted that most Saccos require a withdrawal notice, while some charge a percentage.

She said that if the 41-year-old loses his job, he should be given clear information on accessing the saved money.

"If no job comes through before retrenchment, the savings can be a backup to fund the basic needs before landing another job. Please note that most Saccos need a withdrawal notice of two months before funds are released, while others charge a percentage, e.g., 5%, for early liquidation if you cannot wait for 60 days. Get clear information from Sacco to know how soon you'll access the funds,"

The option of starting a business

Another option is to use the Sacco savings to start a business.

In this case, he should research the best business that does not require much capital.

"Get a need that you can solve that is not capital intensive and deploy part of your savings to push you through. In your situation, the factors surrounding getting employment or running a successful business are beyond your control, and you can hope for the best in either situation."

During the transition period, Mtana said the man could sell some of his items or assets to help him navigate the difficult period.

Disclaimer: Advice given in this article is general in nature and is not intended to influence readers' decisions about solving financial challenges. They should always seek their own professional advice that takes into account their own personal circumstances before making a financial decision.

Do you have a story to tell? Want an expert's advice? Please email us at askanexpert@tuko.co.ke with 'Ask an expert' in the subject line.

Tips to survive employment

In related news, a career expert shared his unconventional yet practical tips for surviving the office environment and avoiding the pitfalls that could lead to unfair dismissal or unnecessary workplace tension.

Through a TikTok video, Obarimo noted that places of employment were unpredictable and sometimes unfair, requiring employees to be shrewd and also conservative.

When invited for a coffee or lunch date by a boss, Obarimo advised ordering modestly, even if the company or someone else is footing the bill.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.