Tropikal Brands Afrika Limited, a leading manufacturer and distributor of household and personal care products in Kenya, has announced its intention to terminate the employment of several workers due to redundancy.
In a letter addressed to the Ministry of Labour and Social Protection, dated 22 January 2024, the company cited economic and high inflation as well as the loss of some principles as the main reasons for its financial difficulties.
The company said it had worked closely with the senior management team to review its business goals, objectives and processes, and had decided to adopt a new business strategy by drastically reducing the operating costs and making some positions within the organization redundant.
The letter stated that the affected employees would be notified of their termination with effect from 1 March 2024, and that they would receive their final dues in line with the company’s policy and the labour laws of Kenya.
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According to the letter, the final dues would include: notice pay as per employee’s contract, pro-rata annual leave days earned but not utilized, severance pay of 15 days for every completed year of service, pension dues as per the company policy less any other amounts owed to the company.
“This was an extremely tough decision, and we do understand the impact this will have on the employees and their families. However, please know that we considered several other alternatives, and the choice we made is the best option at this time,” the letter read.
The letter did not specify the number or the categories of the workers who would be laid off, but data shows that the company employs hundreds of people across its various departments and branches.
Tropikal Brands is known for its popular brands such as Tropikal Hand Sanitizer, Tropikal Baby Wipes, Tropikal Dishwashing Liquid, Tropikal Air Freshener, and Tropikal Mosquito Repellent, among others.
The announcement of the layoffs comes at a time when the Kenyan economy is facing multiple challenges, such as the high cost of living, rising debt, and high unemployment.
