{"id":2521,"date":"2017-02-03T11:38:28","date_gmt":"2017-02-03T09:38:28","guid":{"rendered":"https:\/\/bmkedev.wpengine.com\/?p=2521"},"modified":"2021-11-03T17:37:46","modified_gmt":"2021-11-03T15:37:46","slug":"job-cuts-kenya","status":"publish","type":"post","link":"https:\/\/www.brightermonday.co.ke\/discover\/job-cuts-kenya","title":{"rendered":"Job Cuts in Kenya: The Growing Headache of Job Loss"},"content":{"rendered":"

Industries laying off heavily and how to cushion yourself<\/b><\/h1>\n

According to the <\/span>World Bank<\/span><\/a>, the Kenyan economy is growing at a rate of 6% per annum. With such growth, it is expected that more opportunities of employment are created to absorb young people with the necessary skills. However, in the past five years alone, an <\/span>estimated 2.2 million SMEs<\/span><\/a> closed shop due to various factors. This, obviously, resulted in job and revenue losses. Additionally, several companies reduced the number of staff in a bid to manage their bottom lines or to reduce expenditure. This was as a result of reduced income or other factors such as the introduction of technology which rendered some positions redundant.<\/span><\/p>\n

Obviously, such measures affect families as sources of income are affected. While there have been jobs created in other industries in the past couple of years, it is worth noting that job cuts are now on the rise. We will look at some of the reasons why this is happening and what you can do to protect yourself.<\/span><\/p>\n

But first, let us look at the industries that have been greatly affected by job cuts in the recent past.<\/span><\/p>\n

\"Job<\/p>\n

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  1. Media industry:<\/b><\/li>\n<\/ol>\n

    Late last year, the Nation Media Group shut down Nation FM and QTV. The largest media house in the country stated that it was reorganising itself with the \u201cobjective of transforming the Group into a modern Twenty-First Century digital content company of embracing a digital\/mobile-first business model.\u201d <\/span><\/p>\n

    Earlier on, Royal Media Services, a leading media company in the country also sent home about 50 members of staff in a move that also affected some of its top reporters and editors. The media house cited a drop in revenue and a plan to move to digital as the causes of this move. Additionally, people are consuming content differently and this means fewer clients for media houses, which shrinks their margins and renders some staff members redundant.<\/span><\/p>\n

          2.   Banking industry<\/b><\/p>\n

    The banking industry is labour-intensive but lately, the industry has been scaling down in terms of the number of people it employs.<\/span><\/p>\n

    \u201cIn the last 3 months of 2016 alone, Kenyan banks have a combined total of 1,000 job cuts\u201d Business Daily.<\/span><\/p>\n

    Last year, Sidian Bank offered early retirement opportunities to some of its members. Family Bank also chose to offer some of its staff member’s early retirement so as to implement layoffs. In November 2016, Standard Chartered Bank also announced that it would be laying off 300 staff members as it was closing some of its branches in Nairobi. Bank of Africa also joined this list when it announced that it would be shutting down 12 branches, resulting in job losses.<\/span><\/p>\n

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    1.   <\/span>Manufacturing industry<\/b><\/li>\n<\/ol>\n

      Every developed country in the world has had to rely heavily on a booming manufacturing industry. While Kenya tries to boost this sector so as to create jobs and grow the economy, job cuts have been witnessed in some companies. Last year, Sameer Africa, Kenya\u2019s only tyre manufacturing company, shut down its operations in Nairobi, resulting in a total of 600 jobs being lost.<\/span><\/p>\n

      In July last year, Coca-Cola also announced that it was moving its headquarters from Nairobi to South Africa in a move that was meant to streamline its structure.<\/span><\/p>\n

      In 2014, Eveready a leading dry-cells manufacturer shut down its manufacturing plant in Nakuru citing unfavourable competition from cheap imports which had made its operations unsustainable.<\/span><\/p>\n

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      Table of Contents<\/p>\n