List of Prominent Companies that Quit Kenyan Market Since 2022
- President William Ruto's administration's policies have forced multiple companies out of the Kenyan market
- The Federation of Kenya Employers (FKE) explained the impact on jobs and revealed the number of Kenyans who were rendered jobless
- FX Pesa lead market analyst Rufas Kamau opined that unpredictable policies forced big multinationals to exit the local market
Education is Your Right! Don’t Let Social Norms Hold You Back. Learn Online with TUKO. Enroll Now!
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.
Over the past decade, Kenya has become a challenging environment for both local and foreign businesses.
Source: Twitter
TABLE OF CONTENTS
Despite President William Ruto's promise to foster a more business-friendly climate, his 34 months in power have seen a rise in company closures and reduced operations.
This has resulted in job losses and diminished confidence in Kenya as an attractive investment destination for businesses seeking new opportunities.
Why are companies quitting the Kenyan market?
This downturn has been caused by a combination of factors, including rising operational costs driven by high taxes, regulatory overreach and concerns about political instability.
According to the Federation of Kenya Employers (FKE), the increase in business costs in Kenya is attributed to tax measures, global geopolitical developments, and climate change
"Preliminary results show that between October 2022 and November 2023, we lost 3% (70,000) of the jobs in the formal private sector," FKE stated.
FX Pesa lead market analyst Rufas Kamau opined that unpredictable policies forced big multinationals to exit the local market.
"A nation with stable currency, taxation, and economic growth is a haven for the ultra-wealthy. However, the current administration's actions are slowing economic development by drastically altering tax policy," Kamau told TUKO.co.ke.
Which prominent companies quit the Kenyan market?
1. De La Rue
Due to the Central Bank of Kenya's (CBK) limited demand for printing notes, De La Rue left the Kenyan market.
The company's net profit from the Kenyan division dropped by 58%, from KSh 184.5 million to KSh 76.9 million.
In January 2024, the banknotes printer laid off employees, spending an additional KSh 258 million.
Business Daily reported that it spent £13.9 million (Ksh 2.4 billion) to shut down its Nairobi unit.
2. CMC Motors
Citing economic challenges, such as high operating costs, CMC Motors Group withdrew from the Kenyan, Ugandan, and Tanzanian markets.
The company was one of Kenya's biggest automakers and had been providing farmers with mechanical and agricultural solutions.
More than 160 Kenyans lost their jobs as a result.
3. Ukwala Supermarket
On Friday, December 20, 2024, Ukwala Supermarket Ltd concluded the liquidation procedure.
The supermarket filed for liquidation due to unpaid payments to suppliers and the Kenya Revenue Authority (KRA).
With assets of KSh 19 million, its debt had increased to almost KSh 1 billion.
4. Copia
After being placed under administration, the e-commerce company Copia stopped operating in six towns in June 2024.
The firm informed employees that it will no longer be accepting orders in Meru, Embu, Kericho, Eldoret, Machakos, and Naivasha as of May 29, 2024.
Source: Facebook
5. Sendy
Due to harsh economic conditions made worse by high fuel prices and a weak shilling, Sendy encountered financial problems.
Peter Kahi of PKF Consulting (K) Limited was hired as the administrator.
With a monthly burn rate of about $1 million (KSh 129 million), the company was compelled to cease operations.
6. MarketForce -RejaReja
Kenyan B2B e-commerce company MarketForce closed its doors in four of its five markets in the East African Community (EAC) region and Nigeria.
MarketForce is the proprietor of the RejaReja smartphone application, which enables informal retailers to directly order fast-moving consumer goods (FMCGs) from manufacturers and distributors while also granting access to finance.
MarketForce's products are now offered in Uganda after the company decided to stop providing services in Kenya, Nigeria, Rwanda, and Tanzania.
Which other companies stopped operations in Kenya?
- Jumia Foods.
- LipaLater.
- NopeaRide.
- Hilton.
Which companies sacked workers?
Tala, on Thursday, April 17, announced that it had sent home 28 of its staffers in the customer service department.
At that time, Base Titanium announced that it would lay off 1,600 employees as it leaves the Kenyan market after operating for over a decade.
Other companies that have sent home workers include Twiga Food (which sent 250), Unga Group (which laid off 50), and CIC (which sent 75).
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
Japhet Ruto (Current Affairs and Business Editor) Japhet Ruto is an award-winning TUKO.co.ke journalist with over eight years of working experience in the media industry. Ruto graduated from Moi University in 2015 with a Bachelor’s Degree in Communication and Journalism. He is a Business & Tech Editor. Ruto won the 2019 BAKE Awards’ Agriculture Blog of the Year. He was named TUKO.co.ke's best current affairs editor in 2020 and 2021. In 2022 and 2023, he was TUKO.co.ke's best business editor. He completed the Experimenting with new formats and Advance digital reporting curriculum from Google News Initiative. Email: japhet.ruto@tuko.co.ke.
Rufas Kamau (Financial markets analyst) Rufas Kamau is financial markets researcher, analyst and trainer. He holds a Diploma in Technology: Actuarial Science, finance, life insurance, economics, statistics, IT, mathematics, Portfolio Management from The Kenya Polytechnic University College.
