Mass layoffs at EABL & Telkom Kenya, who's next?

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Find all the trending stories on the Fuzu News Centre

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Fuzu News Centre: week of 29th July

You know how we catch up every Friday! We give you updates on all the business stories that happened during the week to keep you informed. Be sure to find all the trending stories on the ‘Fuzu News Centre’. Here is your week in rewind.


Airtel - Telkom merger signaling for layoffs

On 8th February 2019, Telkom Kenya and Airtel Networks signed an agreement to unite their operations. This stemmed from the need to have a greater distribution network, better brand positioning and improved efficiency. 

Despite the merger being done for the right ‘business’ reasons, 575 Telkom Kenya  employees will be negatively affected. Telkom Kenya put out a statement announcing that it will be laying off 575 employees only to be left with about 225 employees. 

The redundancies will definitely worsen the unemployment rates in the Kenyan market but this also beg the question "Can your skill set survive a job cut?"

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Job cuts at EABL

Diageo, the parent company of East African Breweries Limited (EABL) has announced plans to shut down its business support centre in Nairobi. The move which is set to have 100 employees retrenched, will see the operations moved to other markets. The business centre runs finance, supply, human resources and sales and marketing functions. 

“The business services requirements and processes across Diageo Africa are changing and as such Diageo will be conducting a review of the centre to determine where best to locate technical services roles for Africa in either Europe or Asia,” the multinational said in a statement.

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Old is gold... at least according the proposed amendments on labour laws. 

Sex , color, race, religion, language, nationality, disability, pregnacy and HIV status are a few grounds upon which employers can be cited for discrimination. But this might have to change if the proposed amendments to the Employment Act are passed into law. 

The proposed amendments are set to include dress, language (or place of birth) and age as the new grounds for discrimination. While dress and language may not have had much influence on employers’ hiring decisions in the past, age has been a factor. There are companies notoriously known for retrenching staff who haven’t clocked 60 years (which is the retirement age set by the Public Service Act) or locking out older people when hiring. 

The proposed amendments aim to make the labour laws inclusive and adhere to the constitutional provisions of equality and freedom discrimination. 

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The advert that could cost KETEPA 73 million shillings

Raufco Limited recently renewed its call for compensation of up to 73 million by Kenya Tea Packers Ltd for losses caused by an alleged defamatory advertisement by KETEPA. Raufco Limited claims the advert in question depicted it as fake packers who get cheap tea that could have been stolen from hijacked vehicles on highways.

“These fake tea packers do not collect government tax, VAT (Value Added Tax) hence the reason their tea appears to be cheap by say 15 or 17 percent than Ketepa tea. If these persons were paying government tax, their tea for sure would be even more expensive than Ketepa tea. Consumers are asked to beware of fake tea packers,” the alleged advert reads in part as quoted by Business Daily. 

Talk about playing dirty...

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Indian Leather Producers seek Ugandan Partners

The Indian leather industry accounts for around 12.93 per cent of the world's leather production of hides/skins according to a report published by India Brand Equity Foundation  (IBEF). In a bid to expand its markets in Africa, 12 business delegates from the Council of Leather Exports of India (CLE) led by their Chairman Aqueel Ahmed Panaruma paid a visit to Uganda to explore opportunities for investment in the leather sector. The delegates have held fruitful business meetings with different investors, business partners and the government. 

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    Tenywa sefu | November 08, 2019 10:20


    Yusuf said | August 07, 2019 23:13

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    JIMMY | August 03, 2019 09:01


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