In the heat of the changing economic and financial environment characterizing Ruto’s regime, the list of brands exiting the country continues to grow. In today’s blog post, we will look at some of the multi-million companies that have closed shops in Kenya since 2022.
Hilton Hotel
Hilton Hotel is a global brand of full-service resort hotels founded by Conrad Nicholson Hilton. The multi-million dollar corporation set its feet in Kenya in 1969 through a colorful launching by Mzee Jomo Kenyatta.
On December 31, the 5-star hotel would announce its exit of the Kenyan market, citing the decline in business in Nairobi CBD.
GlaxoSmithKline (GSK)
The British biotechnology and pharmaceutical company, GlaxoSmithKline, is among the multi-million companies that have closed shops in Kenya since 2022.
Like other corporations on this list, GSK attributed its closure to the rising cost of inputs and essential utilities like electricity.
The company also mentioned that growing operational expenses, foreign exchange complexities, and security concerns as well as uncertainties in surrounding policies had contributed to its decision to close shops in Kenya.
We’ll remember GSK for its introduction of the Mosquirix vaccine –a malaria drug the company invented to lower child mortality.
Kune Food
Kune Food joined the list of multi-million companies that have closed shops in Kenya in June 2023. In a a heart-breaking message to employees and the public, the firm’s founder Robin Reecht disclosed that the startup was finding it hard to keep operating in the country.
In the report, Reecht clarified that tough economic times had caused consistently low sales.
Notify Logistics
Hellen Waweru and Waweru Nderitu founded Notify Logistics in 2018 for a simple business model. The company leases a space, divides it into shelves, and rents it out to individuals and small businesses.
The startup officially closed its shops on September 1, 2022. Notify Logistics stated that high operation costs, High expenses, and difficulties in managing the business had made it impossible for the company to break even.
NopeaRide
NopeaRide was Kenya’s first fully electric taxi service and a child company of EkoRent Oy. It started in 2018 with only three vehicles and two charging stations.
In just a few months, NopeaRide became one of the fastest-growing businesses in Kenya. However, little did NopeaRide know that its success was to be short-lived.
The group found the business unsustainable. The company reported that NopeaRide was unable to secure additional funding.
Bad business environment and tough economic conditions made operations unsustainable for NopeaRide.
WeFarm Shop
WeFarm is a product of WeFarm Company and a peer-to-peer agro-tech startup and knowledge-sharing platform. It announced its exit from the Kenyan market in July 2023, barely three years after its launch.
In its early months, WeFarm had a promising future. The tech-based agribusiness platform demonstrated an ability to connect smallholder farmers across the country.
With the WeFarm platform platform, new farmers seamlessly interact with their experienced counterparts. You could ask or answer questions, and even access agricultural resources freely.
WeFarm also operated numerous offline programs through which farmers in rural areas with no internet connection could access and share valuable information.
However, the company’s vision was cut short by hard market conditions that complicated the business’ scale-up model to thrive.
Sendy
If you live in one of Kenya’s big towns, then you know Sendy was a hotcake. The logistics startup enabled retailers to purchase first-moving consumer goods directly from manufacturers.
However, the service did not last long before Sendy became another story of multi-million companies that have closed shops.
The closure saw some 54 employees going home in late 2022. Another wave of Sendy’s workforce lost their jobs in June 2023 before the company finally went to its knees.
Sendy attributed its closure decision to difficulties in securing the necessary funding to sustain the business.
De La Rue
De La Rue is a global company providing products and services related to the movement of goods, personal identity, and integrity of trade.
Founded in London, De La Rue partners with commercial organizations, central banks, and governments to support the participation of individuals and businesses in the global economy.
In January 2023, De La Rue revealed a move to cut its Kenyan-based workforce by 40%. This meant that the company’s over 300 direct employees went home due to a reduction in business across the country.
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The list of multi-million companies that have closed shops is long. For a country with a predominantly young population like ours, this is not a trend to celebrate.
Reports indicate millions of Kenyan youth are fighting unemployment-induced depression while as many as 2,030 companies are reported to have ceased operations in Kenya. It is that sad.
Unfortunately, the government has no policies to restore positive tidings any time soon. All signs only show the situation could worsen.
