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Companies

Simba Corp set to retrench five percent of staff

Simba Corp Group executive chairman Adil Popat
Simba Corp Group executive chairman Adil Popat (left) and group chief executive officer Dinesh Kotecha at a past event. FILE PHOTO | NMG 

Family-owned Simba Corporation, with interests in Kenya’s automotive and hospitality sectors, looks set to let go of about 5 percent, underlining the worsening unemployment crisis.

In a retrenchment decision that comes as a blow to its staff, the firm said it had to let go a large number of workers due to a tough operating environment.

Chief Executive Dinesh Kotecha told the Business Daily that the firm will let go of "maybe 75, 80, 90 but not more” in reference to the approximate number of staff likely to be affected by the cuts.

The dismissals add to the pain of recent job losses that have hit corporate Kenya in a blow to affected households as breadwinners lose their income at a time of rising costs of living.

In a leaked internal memo addressed to staff on the planned retrenchment, the firm confirmed that management is working with heads of departments to confirm the positions that will become redundant from the identified areas at risk.

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Simba Corp said the selection criteria had been determined to ensure fairness through the process.

The move comes a year after the firm lost the BMW franchise to London-based Inchcape Plc and just a few months after it moved to court in a bid to retain its Renault business.

Editor's note: The story has been updated clarify the percentage of staff likely to be sent home by Simba Corp

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