2024 has been a year of mixed fortunes for businesses operating in Kenya, marked by economic uncertainties, shifting consumer trends, and a challenging regulatory environment.
Several companies, local and international, have made the tough decision to exit the Kenyan market or shut down their operations entirely.
This wave of closures raised critical questions about Kenya’s business climate, impacting hundreds of employees who lost their jobs.
This article highlights some of the companies that bowed out in 2024 and the reasons behind their exits.
Foschini Group Kenya Limited Companies
South African luxury fashion brand Foschini shut down its Kenyan operations in April 2024.
In a statement, the company explained that the decision as voluntary, following deliberations at a general meeting.
Consequently, liquidators George Weru and Muniu Thoithi were appointed to oversee the process. High operational costs and a dwindling luxury retail market in Kenya contributed to the brand’s exit, according to the announcement.
The South African fashion brand established its operations in Kenya in 2014. The company has over 4,600 outlet stores spread across the globe, dealing in jewellery, footwear, handbags, cosmetics, sporting, outdoor apparel and equipment and Furniture.
Hashi Energy Limited
An East African oil marketing pioneer, Hashi Energy Limited, announced its liquidation process in June 2024.
The company, which was once among the big players in the energy sector, faced mounting financial constraints and debt amounting to Ksh5 billion.
Ahmed Hashi started the company as a Kerosene distributor for Chevron Kenya, then known as Caltex Oil Kenya.
The company fell from grace in March 2023 after it announced plans to enter into voluntary administration amid financial difficulty.
The liquidator of Hashi Energy put on sale a 3.00-acre piece of land in Changamwe, Mombasa County, with a lease running for 60 years from December 1, 2009.
Also, a 1.447-acre parcel of land with a 58-year lease from January 1997 was put up for sale. On the other hand, the petroleum company’s 26 plots ranging from 0.075-0.128 acres in Kisumu were advertised for sale, among other properties.
Also Read: Last-Minute Court Order Stops Auction of Grabbed Land by Hashi Energy Creditors
Betsafe
Launched in 2020, betting company Betsafe announced its exit from the Kenyan market, effective May 14, 2024.
The company’s CEO, Victor Sudi, attributed the shutdown to excessive taxation on the betting industry.
The decision left many of its Kenyan employees jobless.
Since its launch, Betsafe had served thousands of users and signed major sponsorship deals worth Ksh270 million with Gor Mahia Football Club and AFC Leopards Football Club.
However, in June 2022, the company terminated its partnership with one year left on the deal out of the three years agreed upon. At the time, both clubs indicated that the betting company cited difficulties in business operations.
Look Up TV
After six years of operation, Look Up TV announced the closure of its newsroom on June 7, 2024.
The media house faced challenges tied to the rapid digital transformation in journalism, making it difficult to sustain its operations in a highly competitive and evolving industry.
Look Up TV journalist Tende Anyula announced during a live news broadcast while bidding goodbye to viewers and thanking them for their support.
“The six-year journey could not have been possible without you accepting to watch our bulletins and other shows that Look Up TV’s journalists have been bringing to you daily and we thank all your viewers,” he announced.
Savannah Cement
A homegrown cement manufacturer, Savannah Cement, began selling off its assets after entering receivership in July 2024.
First commissioned in 2012, Savannah Cement’s Financial crises and mismanagement led to its downfall.
The Company and its assets had been put on sale after a financial crisis and interested local and international buyers were directed to submit their Expression of Interest (EOI) for the purchase of the business and assets of the company under administration and in receivership.
Standard Media Group Stations
Standard Media Group in August shut down several TV stations, taking them off the air and abruptly ending multiple popular programs.
The media giant shut down KTN News- Kenya’s first round the clock news channel, and KTN Farmers TV among other brands. These stations were merged with KTN Home, which aired entertainment and lifestyle content.
The move was part of the measures the embattled media house took in an attempt to stay afloat amid financial struggles.
The media house reported a Ksh1.26 billion loss for the year ended December 2023 noting that its total revenue fell to Ksh2.38 billion from Ksh2.53 billion in 2022.
Moreover, the decline was primarily attributed to reduced advertising spending by clients due to the challenging economic environment.
Also Read: Standard Group Responds After Employee Threatened to Commit Suicide
Invesco Assurance Company
In August 2024, the Insurance Regulatory Authority (IRA) placed Invesco Assurance under statutory management.
IRA Commissioner Godfrey Kiptum explained that the move was necessary to stabilize the struggling insurer, which had been facing liquidity issues.
When an insurance company is placed under statutory management, it means that the company is being temporarily overseen and managed by a government-appointed official or body due to financial or operational difficulties.
Invesco Assurance Company had faced financial struggles, including two instances when the insurer was placed under liquidation, and others when it was fined for some offence.
In December 2023, the insurer had to rush to the High Court after the IRA stopped it from issuing new covers, following petitions submitted before the IRA by two claimants.
Sky Foods Limited (Tree Top)
Seven years after it was acquired by businessman Bernard Njoroge, Tree Top’s parent company Sky Foods Limited was placed under administration on September 26, 2024.
Financial mismanagement and mounting debts led to the decision. The official receiver is now managing the company’s affairs and assets.
Benard was part of the sales and marketing team that introduced Del Monte to the market, making millions for the company by overseeing the sale of the products in various countries.
However, he quit his job at Del Monte in 2014, where he was earning Ksh1 million a month, to found Sky Foods.
He was inspired to quit his job after realizing that he was building an empire for other people, yet he did not have any shares in the company.
In 2011, he decided to purchase the trademark from Unilever but took him about 4 years to start the business.
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