P&G to Exit Nairobi by June 2024
Procter & Gamble (P&G), the multinational known for brands like Pampers and Gillette, will cease operations in Nairobi by June 2024. The decision is driven by the high cost of business, currency shortages, and declining sales. Approximately 30 direct workers and contractors will be affected as P&G shifts to a distributor importation model, eliminating local ground support. This move follows years of cost-cutting measures and challenges in extracting value from emerging markets.
Jumia Closes Food Delivery Business
Jumia, operating in seven African markets, including Kenya, announced the closure of its food delivery business in December. The decision, part of a strategic review, was influenced by unfavorable conditions and the business’ lack of profitability. Jumia plans to focus on the physical goods business, emphasizing a strategic shift towards profitability.
GSK Exits Kenya, Maintains Manufacturing Facility
GlaxoSmithKline (GSK), the British pharmaceutical multinational, is set to exit Kenya due to low sales and a strategic shift towards more profitable prescription drugs and vaccines. Despite closing operations, GSK plans to maintain its manufacturing facility in Nairobi’s Industrial Area under its consumer healthcare subsidiary, Haleon. The exit from Kenya follows the closure of GSK’s operations in Nigeria.
East End Junior Academy Permanently Closes
East End Junior Academy, founded in 1993, announced its permanent closure in December 2023 due to the challenging economic environment. The school directors, both over 70 years old, decided to retire, leading to the closure of the school from 2024. The school expressed gratitude for support received and assured parents of continued assistance.
Base Titanium Ceases Mining Activities
Australian mining company Base Titanium announced its decision to cease mining activities in Kwale, Kenya, by the end of 2024. The company, a significant contributor to Kenya’s mining industry, cited the inability to find new mineral resources. The government aims to reform the mining sector and explore alternative sectors such as forestry to offset economic losses.
Africa Oil Exits Turkana Oil Project
Canadian-owned oil and gas exploration firm Africa Oil exited the Turkana oil project in Kenya after settling a tax dispute by paying Sh2.17 billion ($15.5 million) between April and June 2023. The exit followed the relinquishing of its 25% shareholding to Tullow Oil, concentrating on regions with high petroleum potential.
Zumi Shuts Down Due to Funding Challenges
B2B e-commerce startup Zumi is shutting down due to an inability to raise necessary funds for sustainability. The company, which re-emerged in 2020, faced challenges with low digital advertisement revenue. CEO William McCarren stated the difficulty in fundraising in the current macro environment led to the company’s inability to achieve sustainability.
Sendy Ceases Operations, Explores Asset Sale
Kenyan logistics startup Sendy is shutting down its operations due to fund depletion. The company had been cutting costs but was unable to raise additional capital. Sendy is exploring the sale of its assets, including tech and fulfilment operations, to other African companies in the B2B e-commerce and trucking space.
De La Rue Suspends Operations in Kenya
Security printing firm De La Rue plc suspended its operations in Kenya after 25 years, citing reduced demand for banknotes. The company’s joint venture with the government remains active, and it is open to exploring future business opportunities in Kenya, provided the economic climate is conducive.
MarketForce Scales Down Operations, Launches Chapter
Kenyan B2B e-commerce company MarketForce has shut down operations in three of its five markets in Africa and is in the early stages of launching a social commerce spinout called Chpter. The company’s super-app, RejaReja, will only be available in Uganda. Kenya will continue to serve as the company’s headquarters and a launchpad for Chpter after some venture capitalists reneged on their Series A funding commitments.