Unga Group Fires Employees Amidst Tough Economic Time
Unga Holdings announced in a notice published on Friday that it was experiencing difficulty generating profits and would therefore be implementing redundancies.
The notice, which was duly signed on November 24, contained an announcement by the organization that personnel from every branch, including Unga Limited and Unga Farm Care, would be terminated.
The flour manufacturer stated that fifty employees would be made redundant in the initial phase of the reorganization.
Additionally, it claimed that similar to other enterprises in Kenya, it was grappling with the difficult economic climate and confronting novel obstacles to remain operational.
“Our volumes and margins are down. Our sales, particularly for the Unga Limited business, have been below budget consistently, resulting in low capacity utilization and high fixed costs that are no longer sustainable,” the company stated.
Unga Limited acknowledged experiencing a period of difficulty maintaining financial viability, encompassing concerns related to both profitability and cash flow.
“We have worked on several initiatives to bring our costs in line with anticipated business performance, but despite this, it has become apparent that we also need to restructure our organization. This will result in loss of job,’ the company told its employees.
Unga Holdings stated that it would determine which employees to retain based on objective and quantifiable selection criteria, which would consist of dependability, skill, and capability.
ALSO READ:
- Gachagua Assembles Elite 20-Lawyer Squad to Fight Impeachment
- Exposed: Web of 19 Companies That Could Make or Break Gachagua in Impeachment Battle
- Makau Mutua Predicts Rigathi Gachagua Will Resign Before His Impeachment on Tuesday
- CSs Joho, Mbadi & Barasa Announce Key Appointments
- Ruto’s Ksh303B Borrowing Pushes Public Debt to Ksh10.5 Trillion, Set to Reach Ksh13 Trillion by 2028
Employees who were impacted were encouraged to participate in a counseling program that was offered at no expense to the workforce.
“We would like to thank you all for your continued professionalism during this difficult period,” the company told employees facing imminent job loss.
Employee termination was decided upon five months after the issuance of a profit warning by the organization.
“Scarcity of locally sourced raw materials led to increased importation at higher global prices. This led to increased production costs which could not be fully passed to the consumers,” the company remarked during the profit loss warning.
Furthermore, the organization disclosed that it was incurring financial losses as a result of the challenging business climate, which was further aggravated by the shilling’s depreciation against the dollar.
The weakening of the Shilling, according to Unga Holdings, has resulted in margin erosion, significant foreign exchange losses, and increased interest expenses.
Unga Group Fires Employees Amidst Tough Economic Time
