Banknote printer De La Rue is shedding close to 300 employees following the freeze of Kenya operations on low business following the sh1.1 billion case by KRA.
The firm is said to release the last lot of its employees in March.
The firm said it does not expect any banknote printing order from the Central Bank of Kenya (CBK) for at least the next 12 months due to low market demand.
Kenya has recently become a popular destination for technology and financial service companies looking to expand in Africa.
Companies like Microsoft, Alphabet, and Facebook have been increasing their investment in the country due to its growing economy and large young population with access to the internet.
The workers said about 60 of their colleagues who were on contract were let go in July. Another 72 employees who were serving on permanent terms were released in September.
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“Government is not printing any new notes now. Those of us who were dealing with notes left. The last order of banknotes they (De La Rue) got was up to September 2022,” one anonymous worker told Business Daily.
De La Rue’s results for the six months ended September 2022 showed profits from the Kenyan unit had dropped by 58 percent from £1.2 million (Sh184.5 million) to £0.5 million (Sh76.9 million) on reduced revenue, highlighting the impact of low business.
Profit for the full year ended March 2022 had also dipped from £3.1 million (Sh476.6 million) to £2.2 million (Sh338.3 million).
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The Treasury earned £0.9 million (Sh138.4 million) from De La Rue’s full-year profit for the 40 percent stake it acquired at £5 million (Sh768.7 million) in 2019.
De La Rue has been working in Kenya for over 25 years from where it serves other markets such as Tanzania, Uganda, Zambia and Rwanda.