Mass Layoffs Loom as International Conglomerate Plans to Fire Over 2,000 Kenyan Workers

Over 2,000 Kenyans risk unemployment after an international company announced plans to retrench workers across its tea estates, sparking widespread public uproar.

Sri Lanka’s Browns Plc announced plans to lay off more than 2,000 Kenyan employees, barely a year after acquiring tea plantations in Kericho, Bomet, and Kiambu counties from James Finlay Kenya and Ekaterra Plc.

The Browns Company has been greatly condemned by government leaders for unjustifiably targeting workers, months after taking over the plantations.

Gratuity Offer Under Browns Company Existing CBA

According to a notice dated 19 September, the Browns company is offering a voluntary early-retirement package under the current Collective Bargaining Agreement (CBA).

The package, according to Rajiv Bandaranayake, the Chief Executive Officer (CEO) of Browns Company, included severance pay equal to 23 days of salary for each completed year of service, as well as one-way bus fare.

Additionally, it required the employees to provide “notice pay in accordance with the terms of service as per the CBA, pro-rated pay for outstanding leave days”.

Union Opposition and Legal Threat

According to reports, the Kenya Plantation and Agricultural Workers Union (KPAWU) and the Central Organisation of Trade Unions (COTU) have opposed the Browns’ retrenchment.

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A letter sent to the company on behalf of COTU Secretary-General Francis Atwoli called for a review of the move and warned that legal action would be taken if Browns Plc proceeded without consulting all parties involved.

Union representatives argue that the company is unjustifiably targeting workers, and while the package meets CBA requirements, it does not justify the scale of the layoffs.

Furthermore, Kericho County Governor Erick Mutai joined the calls for the company to halt its voluntary early-retirement programme.

The local leadership wants the firm to engage with county leaders, union officials, and community representatives before any job cuts are made.

Sri-Lankan Tycoons to Buy Kenya’s Top Consumer Company

This comes after Sri Lankan Company, Hemas Holdings, is set to acquire a major stake in a Kenyan consumer products company.

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Announced on 25 September, the Colombo Stock Exchange confirmed that Sri Lanka’s Hemas Holdings PLC had signed a Conditional Share Sale and Purchase Agreement to acquire a majority equity interest in a consumer products company based in Kenya.

The company clarified that completion of the deal hinges on several regulatory checks.

Approvals are required from the Competition Authority of Kenya and the Central Bank of Sri Lanka, alongside other customary conditions precedent.

Hemas did not name the Kenyan firm but confirmed that updates will follow once all approvals are in place.

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