Confirmed: Ashton Mombasa Apparel EPZ to sack 1900 workers
The high cost of living in the country continues to affect not only Kenyans but even the companies in the country.
The latest development shows that some companies, such as Ashton Mombasa Apparel (AMA) EPZ Limited, are struggling to stay afloat in the business.
The statement seen by Nairobi News from Ashton Mombasa Apparel EPZ Limited states that almost 2,000 employees have been sent home following a decision, which was made on March 25, 2024.
According to the management, the contracts for the affected employees could not be renewed due to the tough economy, which has seen it declaring redundancy.
“It is important to note that this decision is solely driven by the current business needs, which necessitate a reduction of about 1,900 employees to align with the reduced demand from our customers. We deeply value the contributions of all our employees, and this decision was not made lightly,” part of the letter reads.
The move has been prompted by the significant reduction in contract orders from AMA’s valued customers.
However, the company said that the contracts for the majority of its workforce, which is about 10,700, have had their contracts extended despite major reductions in the number of their customers’ orders.
The dues for the affected employees will be settled in accordance with the terms outlined in their contracts as directed in the Kenyan Employment Act.
Also, the company stated that if the situation improves going forward, some of the employees who have been sacked will be reached out.
“While we understand the impact this may have on the affected individuals, we remain hopeful that business conditions will improve in the future. Should there be a resurgence in demand and an improvement in our operational requirements, we will prioritize rehiring staff accordingly.”
The latest development regarding the state of the country has seen Catholic bishops and leaders from other churches in the country asking President William Ruto to go slow with his plans for new taxes since Kenyans are already struggling to put food on their tables.
According to the latest pollster from Infotrak, more than 50 per cent of Kenyans perceive that the country is heading in the wrong direction under the Kenya Kwanza administration.