Connect with us

Business

Tough time as Kenyan companies plan mass job cuts

Published

on

The wave of lay-offs has hit Kenyan companies once again with more than four firms spelling intentions of getting rid of hundreds of workers before the end of the year.

Out of over 60 listed companies at the Nairobi Securities Exchange (NSE), 15 companies have so far announced that they are not making enough money signalling tough times ahead.Some analysts attribute the layoff wave to the high cost of labour and production as well as mass adoption of technology.

“The cost of labour in this country is very high and that means that if companies cannot rejig their businesses to be more efficient they are going to go down, to avoid going down, the first place to look at basically is how to reduce the labour cost,” says Patrick Obath, Kenya Private Sector Alliance trustee.

“A lot of companies are also going digital and buying various innovations most of which are now being developed locally; the innovations carry a lot of efficiencies leading to redundancies in some jobs,” he says.

He added that the technology wave means many people are going to lose their jobs and forced to rethink their careers and at times, it will call for retraining to fit into the digital economy that Kenya is fast-moving to.Telkom, Stanbic, East Africa Portland Cement, and the Diageo, the parent company of East African Breweries have already issued layoff warnings to workers with some of the retrenchments planned for as early as this month.

READ ALSO:   #FirstClassBetrayal: Tear-jerking story of first class graduate who ended up on streets

East Africa Portland, which is the latest firm to announce the retrenchment plan, says all workers will have to go home as competition in the industry and lack of sufficient capital makes it untenable for the firm to operate as expected.

The company had 448 permanent and 488 contract employees on its payroll as of last year, with the former being offered a severance package of one month’s pay for every year worked as well as a gratuity payment.The company also revealed that it has been making Sh8 million loss daily, making its turnaround strategy untenable.Stanbic bank plans to part ways with around 255 employees in a voluntary retirement package plan.

“The voluntary early retirement is an outcome of a clear strategy, where we are looking at how to become in the business that we run. But also as digitise, and become more digital it means some functions will have to be re-organised as a result,” said Stanbic Bank Kenya Chief Executive Charles Mudiwa.Stanbic joins a number of banks in the country that have been restructuring their operations in line with a changing economic landscape.

In the telecoms sector, Telkom with last month announced that it would send home hundreds of its workers following an impending merger with Airtel Kenya.“We intend to terminate the employment of approximately 575 of our employees, on account of redundancy, as a result of the transaction,” says Telkom CEO Mugo Kibati.

READ ALSO:   #FirstClassBetrayal: Tear-jerking story of first class graduate who ended up on streets

In February, Telkom and Airtel announced the signing of a binding agreement to combine its respective mobile, enterprise and carrier service businesses in Kenya to operate under a joint venture company to be named Airtel-Telkom.Consequently, the company said in a memo to staff that it will discontinue the transferred business and must terminate the contracts of employees currently deployed in the affected business areas.

“In accordance with the provisions of Employment Act, we have notified communications workers union and sent out letters to individuals affected giving one month’s notice with effect from July 31,” Kibati said.The Joint Venture Company, said Kibati, might consider offering employment to some sacked employees “subject to positions being available in the new organisation and those individuals meeting the recruitment criteria.”

By standard

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Job Vacancy: Business Manager

Published

on

We are seeking an experienced Business Manager to lead and oversee the work of employees in our Optiven Construction company.  The eligible person will be responsible for ensuring the efficiency of business operations as well as setting strategic goals for the future.

Optiven Construction Company is based in Kitengela, Namanga Road, Acacia Junction, we are known to be the leading manufacturing company in construction items majorly Cabros, Hollow Blocks, Paving Slabs, Road Channels, Road Kerbs, Wall Copings, Culverts, Louvers, Fencing poles and many others.

The successful candidate will be a competent leader able to provide guidance that enhances performance in a manner which incorporates the company’s vision and culture. The goal will be to ensure the profitability of our company’s activities to drive sustainable development and long-term success.

Reporting to: Company Directors.
Location: Kitengela

Duties and Responsibilities

Business Development & Marketing

  • Developing business management goals and objectives that lead to growth and prosperity.
  • Designing and implementing business plans and strategies to promote the attainment of goals.
  • Maximizing new business development opportunities for the organization.
  • Gathering, analyzing and interpreting external and internal data and write reports.
  • Coordinating activities that affect operational decisions and business requirements.
  • Representing the company in meetings and events i.e. exhibitions, conferences, Activations and other construction or real estate projects.
  • Identifying and targeting areas in which a business can improve operation
READ ALSO:   #FirstClassBetrayal: Tear-jerking story of first class graduate who ended up on streets

Procurement Management

  • Maintaining relationships with vendors & suppliers.
  • Participating in purchases of materials and services required for production.
  • Ensuring effective purchases of raw materials without compromising quality & with price sensitivity.
  • Ensuring that the company has the adequate and suitable resources to complete its activities (e.g. material, equipment etc.)
  • Sourcing for bids and tenders & coordinating with internal departments for Supply.
  • Proposing the best technical and economic solutions (quality, cost & deadlines)
  • Communicating any changes in the order or delivery date to relevant parties.

Financial Management

  • Assessing overall company financial performance and report on daily sales and production.
  • Monitoring revenue margins, maximizing revenue through innovative sales practices and yield management programs.
  • Preparing financial projections, reports and targets and reporting to the directors on a Monthly at times weekly basis.
  • Advising management on financial related matters.

People Management

  • Ensuring adherence to legal rules and guidelines.
  • Determining hiring needs, overseeing assignment of employees and planning staff development.
  • Overseeing employees’ productivity.
  • Organizing and coordinating operations in ways that ensure maximum productivity.
  • Supervising the work of employees and provide feedback and counsel to improve efficiency and effectiveness.
  • Motivating, mentoring and providing direction to the team

Customer Relationship Management

  • Be fully conversant with the commercial and technical requirements of customers.
  • Discussing monthly customer complaint reports with the management and offer solutions.
  • Meeting existing and potential clients, identifying and gathering their specific needs at an early stage.
  • Securing the relationship with the clients until the achievement of their projects.
  • Be the face of company and day to day point of contact with clients in all regions.
READ ALSO:   #FirstClassBetrayal: Tear-jerking story of first class graduate who ended up on streets

Requirements: – Abilities, Knowledge and Skills

  • Bachelor’s degree in Marketing, Business Administration, Accounting, Finance, Economics or Civil engineering.
  • Great Exposure to Sales and Marketing Initiatives
  • Strong communication, organizational, presentation and negotiation skills
  • Ability to take ownership, working independently and meeting deadlines
  • Possess personal qualities of integrity, credibility, and commitment to company mission
  •  Ability to engage and motivate others.
  • Strong reporting skills.
  • Excellent in developing customer relationships and customer service
  • Professionalism, high level of maturity, good character with positive values

Applicants who meet the above criteria are required to send their applications torecruitment@optiven.co.ke with “BUSINESS MANAGER” being the subject of the email and with detailed CV,names & addresses of three referees.  Only shortlisted candidates will be contacted.

Note: We do not charge any fee for recruitment.

 

 

Continue Reading

Business

DPP Haji now targets Keroche power couple with Sh14 billion tax evasion suit

Published

on

DPP Noordin Haji has ordered for the arrest and arraignment of Keroche Breweries directors Tabitha Karanja and Joseph Karanja for allegedly evading taxes amounting Sh14.45 billion since 2015.

In a statement to newsrooms, the DPP said investigations revealed that the directors could be culpable of 10 counts of tax fraud between January 2015 to June 2019.

The DPP said the KRA commissioner general submitted an inquiry file to his office on August 18 and an audit by KRA established that Keroche Breweries had evaded payment of tax tallying to Sh14,451,836,375.

The amount evaded, according to the DPP, included stamps valued at Sh329,424,019, Crescent Vodka brand valued at Sh135,402,950 among other products registered under the company.

The exercise duty evaded on the said products, according to KRA, amounted to Sh2,101,846,768 billion.

IN PUBLIC INTEREST

The DPP says that he is satisfied that there is sufficient evidence and that it is in the public interest to charge the suspects with 10 counts of tax fraud contrary to the Tax Procedures Act of 2015.

For more than a decade, Keroche has been battling with Kenya Revenue Authority over tax arrears the brewer owes the taxman.

In 2017, a three-judge Court of Appeal bench ruled that KRA had abused its powers by sending a tax demand of the three tax heads and penalties amounting to Sh1.1 billion through a letter dated November 29, 2006.

READ ALSO:   #FirstClassBetrayal: Tear-jerking story of first class graduate who ended up on streets

The ruling was the third in the 10-year battle in favour of the brewer, which gave them a fresh lease of life to the 20-year-old Keroche.

The letter was dismissed as unreasonable because it had come without an accompanying schedule of details of the said assessment and without proper notices.

The revenue authority had appealed an earlier decision by the High Court on July 6, 2007, where Justice Joseph Nyamu had prohibited the taxman from demanding the taxes, citing “abuse of powers”.

The taxman, who was also demanding an additional Value Added Tax of Sh305 million, was basing the tax bill on an assessment carried out in 2006, where some Keroche products had allegedly not been given the right classification, hence being subject to lower taxation.

by nairobinews

Continue Reading

Business

SPONSORED: “Mahiga Homes” wins 2 coveted Real Estate Awards [VIDEO]

Published

on

The Leading Real Estate Developer Mahiga homes Ltd won two major coveted awards in The Real Estate Excellence Awards, namely:

1. Best in off plan Residential Sales
2. Best low cost low rise Residential Developer.
This comes in the wake of being recognized internationally by being awarded The Leading Real Estate Brand 2019 by UK based ranking company Global Brand Awards.
This makes Mahiga homes Ltd the best company with the most Awards totaling to 7 since it started operations 2 years ago.

The previous awards are:
KPRA Awards
1. The Rockie of the Year 2018
2. Affordable Housing Initiative

 

Real Estate Excellence Awards 2018
1. Most Promising Residential Developer 2018
2. Best Low Cost Residential Developer 2018

www.mahigahomes.co.ke
+254720460413

READ ALSO:   #FirstClassBetrayal: Tear-jerking story of first class graduate who ended up on streets
Continue Reading

Do you want to own an affordable home in Kenya?

Are you looking for a Church to fellowship in Atlanta Metro Area?

poapay3

Like us on Facebook, stay informed

NEWS TRENDING RIGHT NOW

2019 Calendar

August 2019
M T W T F S S
« Jul    
 1234
567891011
12131415161718
19202122232425
262728293031  
satellite-communication1.jpg

Trending

error: Content is protected !!