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Keroche cuts costs as beer sales order hits bottom line

Keroche Breweries
Keroche Breweries plant in Naivasha. FILE PHOTO | NMG 

Keroche has resorted to deep cost-cutting to stay afloat amid economic crisis caused by the ripple effects of the coronavirus.

According to the Keroche Breweries chief executive officer, Tabitha Karanja, her company has been forced to embrace cost cutting measures to survive the harsh economic times.

Speaking to the Business Daily, she said the firm had scaled down on major operations, only retaining staff offering critical services like maintenance.

"It is a global phenomenon and just like many companies around the world, we have to adapt to measures that will enable us survive the critical period," said Mrs Karanja.

Prior to the State order halting selling of beer in bars, the company had increased its online presence and embraced home deliveries, aimed at retaining it's customer base.

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"Beer taking in African setup is a social event and drinking from home is not as popular," said Mrs Karanja.

She also stated that some of the employees had proceeded on unpaid leave, while others had their stay home period extended.

Despite the financial toll the pandemic is having on her firm, the CEO said she supported the presidential order on selling of beers.

"The move is aimed at helping to curb the spread of the virus and I totally support it," added Mrs Karanja.

The Naivasha- based beer maker said they were closely monitoring the situation and adjusting accordingly.

“It is apparent we will be forced to change our business model to cope with the evolving business situation in order to stay afloat," revealed Mrs Karanja.

She said the company was optimistic of bouncing back after the current period of uncertainties.

Keroche Breweries has been eyeing more than 20 per cent of the market share with a production plant that has a capacity of producing 30 different brands

The company has enjoyed steady growth since its inception 18 years ago.

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