Ruto’s American Charm: Attracting US Giants AS Local Companies Close, Fire Employees
Despite President William Ruto’s efforts to attract investors from the West, especially the United States, local businesses have been grappling with an unfavorable business environment.
Within one year, President William Ruto successfully persuaded more than five prominent American multinational corporations to establish their presence in Kenya.
During the identical timeframe, more than six multimillion-dollar companies have either shut down, downsized their workforce, or issued a profit warning.
In a previous conversation with Gossipa2z, Dr. Brian Mutie clarified that President William Ruto demonstrated greater effectiveness on the international platform as opposed to the domestic one.
“President Ruto is performing well at the meta-governance level – at the global level. The country’s rating is performing well at that level and has been touted as one of the most progressive economies,” Mutie explained then.
In November 2023, Billionaire Bundotich Buzeki revealed his decision to reduce the scale of activities in his logistics firm, citing the significant impact of soaring fuel costs on the company’s profitability.
“We sent 300 staff parking. We still have some employed. Things are tough and this is the truth,” Buzeki updated the Kenyans on January 13.
Buzeki isn’t the sole investor compelled to make challenging decisions. Reports indicate that a well-known hospital in Kenya is downsizing and releasing staff due to unfavorable policies and operating conditions.
Over the past year, both Unga Group and Limuru Tea PLC issued a cautionary statement about their profits, attributing it to elevated operational expenses and the depreciation of the shilling against the dollar.
Additionally, on February 1st, it was disclosed that a manufacturing company with a multimillion-shilling valuation, specializing in homecare products, opted to lay off its employees in response to challenging business conditions and escalating inflation rates.
One week later, following the announcement of the closure of a prominent maize milling facility located in Nairobi, the decision was made to shut down operations and liquidate all assets for a total of Ksh400 million.
While domestic businesses are facing challenges in achieving profitability, American multinational corporations view Kenya as an attractive market for either relocation or the establishment of a regional branch.
ALSO READ:
- How not to make a mistake when choosing the best bookmaker in Kenya
- Understanding Gatwiri’s Cause of Death: Unraveling Positional Asphyxiation
- KRA Rules Out Tax Relief on SHIF Deductions
- Understanding Why Married Women Cheat: Common Reasons Behind Infidelity
- Violence Erupts in Mozambique: Three Killed, 66 Injured in Protests Over Disputed Election
Bill Gates, the co-founder of Microsoft, revealed on November 16, 2022, following his trip to Kenya, that the Bill and Melinda Gates Foundation would establish its regional headquarters in Nairobi. The focus of this headquarters would be on addressing matters related to Health, Agriculture, and Information and Communication Technology (ICT).
Following a productive discussion with President William Ruto at State House in Nairobi, this occurred.
Four months following Bill Gates’ commitment to Ruto, J.P. Morgan declared its intention to establish a regional office in Kenya.
President William Ruto characterized the action taken by the American multinational financial services company as courageous.
“The bold decision taken by J.P. Morgan to set up a regional office in Nairobi is a vote for Kenya’s emerging success in the global marketplace,” he stated then.
In October of 2023, Kenya achieved a notable milestone as Talus Renewables, a US company, revealed plans to establish the world’s inaugural modular green ammonia fertilizer plant within the country, marking a significant investment move.
In December 2023, Human Biosciences confirmed Kenya’s status as a prime choice for international investors by revealing plans to establish a facility in the country dedicated to the manufacturing of Collagen products.
The large pharmaceutical corporation disclosed that the items would be employed in medical facilities to address wounds.
On January 31, President William Ruto revealed the inaugural global agreement of 2024, stating that Nairobi would be the location for a new center established by the prominent American technology company, Oracle Corporation.
Ruto praised the initiative, emphasizing its significance in driving the digital transformation of the Kenyan government, public institutions, businesses, and startups.
During his conversation with Gossipa2z, Dr. Brian Mutie emphasized the importance for Ruto to replicate his international achievements on a domestic level.
Ruto’s American Charm: Attracting US Giants AS Local Companies Close, Fire Employees
