Despite the worsening unemployment crisis in Kenya, four firms have announced about 1,700 job cuts in three weeks.
The four firms; East African Portland Cement Company (EAPCC), Telkom Kenya, Stanbic Bank of Kenya and East African Breweries Limited (EABL) have issued the affected employees’ notices of the impending layoffs, citing the need to reduce their payrolls.
Stanbic Bank, three weeks ago declared a redundancy targeting an estimated 200 staff, while EAPCC last week said it would let go of its 800 workers.
Portland Cement also announced the dismissals of all jobs, including those of top management by October.
The managing director of EAPCC, Mr Stephen Nthei last week said roles will be merged to have a headcount of not more than 600 staff while those rehired will have to take a 40 per cent pay cut.
Meanwhile, Mr Nthei is scheduled to have a meeting with all staff on Friday to elaborate on the matter. He started
“We have a workforce whose total cost, compared to productivity, is very high. Our target is to operate with less than 600 people earning less than what they are earning now,”
EAPCC allegedly spent Sh3.04 billion to pay 936 of its employees in the financial year ended June 2018, a 96 per cent jump from Sh1.56 billion spent on 1,265 employees the previous year.
The job losses, across four distinct sectors of the economy, indicates a widespread economic problem of stagnated job creation in the country.