A lot of corporate restructuring currently taking place in Kenya may lead to massive staff lay offs. It is usually the case during a merger where for strategic reasons, two or more businesses combine to form a new entity.
At times massive layoffs are to enhance cost cutting measures. This is especially so for entities that are overstaffed. Such organisations incur unnecessarily high wage bills that include salaries, commissions, bonuses, statutory deductions such as National Hospital Insurance Fund (NHIF), National Social Security Fund (NSSF), and pay-as-your-earn (PAYE) and pension contributions.
