10 Kenyan Companies Calling It Quits in 2023

Several esteemed companies in Kenya, including industry leaders such as Procter & Gamble, Jumia, and GlaxoSmithKline, have made public their intentions to cease operations in 2023. This strategic decision stems from various factors such as exorbitant business expenses, adverse economic circumstances, evolving business tactics, and inadequate funding. It is imperative to scrutinize the implications of these significant closures on the domestic economy.

To commence, Procter & Gamble (P&G), the renowned multinational corporation recognized for its popular brands such as Pampers and Gillette, is poised to depart from Nairobi by June 2024. This resolution has been influenced by the disproportionate cost of conducting business in Kenya, currency scarcity, and diminishing sales. Approximately 30 direct employees and contractors will be impacted by the cessation of operations.

In addition, Jumia, a prominent e-commerce platform in Africa, disclosed the termination of its food delivery enterprise in Kenya in December due to unfavourable business conditions. The company is realigning its focus on profitability by prioritizing its physical goods business.

Furthermore, GlaxoSmithKline (GSK), a British pharmaceutical conglomerate, is also planning to withdraw from Kenya after nearly six decades of operation in the country. The company will rely on distributors to dispense its products to regional markets, attributing the decision to lacklustre sales and a strategic shift towards more lucrative prescription drugs and vaccines.

Moreover, East End Junior Academy, an educational institution in Kenya, has declared its permanent closure due to the formidable economic environment in the country. The arduous business conditions have precipitated the retirement of the school’s directors, prompting the discontinuation of the institution from 2024.

On the same note, Base Titanium, an Australian mining company, has also announced its decision to halt mining activities in Kwale, Kenya. This move will have a substantial impact on the local economy, resulting in job losses and influencing government revenue. As a consequence, the government is contemplating reforms in the mining sector to attract new investors and mitigate the losses.

Furthermore, Africa Oil, a Canadian-owned oil and gas exploration company, departed from the Turkana oil project in Kenya after resolving a tax dispute by paying a total of Sh2.17 billion. This led to its withdrawal from the project in order to concentrate on regions with high petroleum potential.

Similarly, Zumi, a B2B e-commerce startup, is ceasing operations due to its inability to secure the necessary funding to sustain its activities. The company will be laying off its team of 150 employees as a result of the closure.

Likewise, Sendy, a Kenyan logistics startup, is also terminating its operations and exploring the sale of its assets. The company has encountered challenges in raising additional capital and is currently seeking to vend some of its assets to other African companies in the B2B e-commerce and trucking sectors.

De La Rue plc, a globally renowned security printing firm, has opted to suspend its operations in Kenya, marking the conclusion of its 25-year presence in the country. The company has cited diminished demand for banknotes as a pivotal factor in this decision.

Lastly, Kenyan B2B e-commerce company, MarketForce, has ceased operations in three of its five markets in Africa but is in the early stages of launching a social commerce spinout called Chpter. The company’s super-app, RejaReja, which enables informal retailers to order fast-moving consumer goods (FMCGs) directly from distributors and manufacturers and access financing, will only be available in Uganda after discontinuing offerings in Kenya, Nigeria, Rwanda, and Tanzania. However, Kenya will continue to serve as the company’s headquarters and a launchpad for Chpter.

In conclusion, the closures of these notable companies in Kenya underscore the challenges encountered by businesses in the country. The repercussions of these closures on the local economy and the workforce are significant. Therefore, it is imperative for the government and pertinent stakeholders to address these issues and explore opportunities to bolster the business environment in Kenya.