British American Tobacco (BAT Kenya) company has announced a restructuring plan that will result in job losses.
BAT Kenya, which directly employs over 400 people in the country according to its website, is part of the British American Tobacco Group, a leading, multi-category consumer goods business that operates internationally.
In an internal memo dated December 19, 2024, sent to all employees, the company’s management issued an update on the simplification of its Nairobi manufacturing factory operations, warning that it will result in a staff reduction exercise.
“As previously communicated, BAT continuously looks for opportunities to simplify its business. After an extensive assessment, a decision has been made to review the operations in our Kenya manufacturing factory, which will result in a staff reduction exercise to drive efficiencies and optimize operations,” the letter reads in part.
Consequently, BAT Kenya explained that 19 roles within the Nairobi manufacturing factory will be impacted, with some, or all these roles, becoming redundant.
The company said that the decision is a difficult one for the leadership team but highlighted that it is necessary, to facilitate business competitiveness and sustainability.
BAT Kenya explains restructuring
According to the cigarette manufacturer, the decision is primarily informed by the impact of an increasingly challenging external operating environment in both the domestic and export markets, characterized by regulatory uncertainty, unpredictable fiscal frameworks and increasing levels of illicit trade.
“This has led to the decline of its cigarette volumes over the years, resulting in an increase in the cost of running our manufacturing operations. To address these realities, we require to take necessary corrective actions,” the letter adds.
Also Read: Unmasking the Hidden Dangers of Vaping: Why You Should Quit
BAT Kenya has reassured employees that the process will be undertaken in line with the applicable laws and company policies, including the Employment Act 2007, on the back of which the notification has been issued.
As part of the process, the company is set to undertake consultative meetings with the relevant parties, after which the outcomes will be communicated, and next steps implemented.
The letter added, “This process will be undertaken with utmost respect and meet our duty of care to our People. We shall ensure provision of the necessary support to all impacted and any other employees as may be needed. In case of any queries, please speak to your Head of Function or Human Resource Business Partner.”
The notice by BAT Kenya comes at the tail end of 2024 which has been a year of mixed fortunes for businesses operating in Kenya, marked by economic uncertainties, shifting consumer trends, and a challenging regulatory environment.
Tough times for businesses in Kenya
Several companies, local and international, made the tough decision to exit the Kenyan market, shut down operations entirely or announce redundancies.
Also Read: Companies that Exited Kenya or Shut Down in 2024
G4S Kenya Limited security company back in November announced plans to fire four hundred employees within the next six months.
On November 4, the Company’s Human Resources Director, Helgah Kimanani wrote a notice of redundancy to the Ministry of Labour and Social Protection saying that the decision was made due to a decrease in business in Kenya.
The G4S HR Director said the letter serves as a notice of redundancy pursuant to the provision of the Employment Act, 2007 Section 40 (1).
Further, the company said that the process would be done between November 4 and April 2025 and will affect employees in various parts of the country.
“The redundancy exercise is likely to affect approximately four hundred (400) employees based in various locations in Kenya in both categories of management and unionsable cadres between 04 November 2024 and April 2025,” G4S said.
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