Simba Corp to lay off workers as franchise losses take toll

Family-owned Simba Corporation, with interests in Kenya’s automotive and hospitality sectors, looks set to let go of a significant chunk of its 1,500 workers, underlining the worsening unemployment crisis.

In a retrenchment decision that comes as a blow to its staff, the firm said it had to let go a large number of workers due to a tough operating environment.

“I don’t see myself having more than five percent of employees attached to this group,” said Chief Executive Dinesh Kotecha told the Business Daily.

The dismissals add to the pain of recent job losses that have hit corporate Kenya in a blow to affected households as breadwinners lose their income at a time of rising costs of living.

In a leaked internal memo addressed to staff on the planned retrenchment, the firm confirmed that management is working with heads of departments to confirm the positions that will become redundant from the identified areas at risk.

Simba Corp said the selection criteria had been determined to ensure fairness through the process.

The move comes a year after the firm lost the BMW franchise to London-based Inchcape Plc and just a few months after it moved to court in a bid to retain its Renault business.