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“In line with the company’s decision to exit the Kenyan market, it intends to permanently close its home office. It is contemplated that the proposed closure will cause employees of the said office to be declared redundant and therefore the termination of their employment contracts on the account of the redundancy. This decision will impact you,” reads part of the letter.
“This letter, therefore, serves to provide you with not less than a month notice prior to the date of the intended termination on account of redundancy in terms of Section 40 of the Employment Act of 2012.”
The letter further explained that the firm’s Kenyan operations were no longer viable, citing the losses for the last financial year.
Shoprite to quit Kenya January after Sh3bn loss
Thursday December 31 2020
By OTIATO GUGUYU
Summary
The retailer has notified Kenya Union of Commercial Food and Allied Workers that it will shut its head office in January ending its two years of operations in Kenya.
The retailer has closed its four outlets in Westgate Mall, Garden City, Karen branch and the City Mall branch in Nyali, Mombasa and shed hundreds of jobs after its local operations suffered underperformance.
Shoprite has written redundancy letters to its last workers stating the business is no longer viable having suffered a loss of Sh3.2 billion this year.