Bamburi Cement spent Sh153 million to retrench workers in its
Kenyan operations in the year ended December, joining the list of firms that
incurred substantial costs to reduce workforce.
“In order to achieve operational efficiency, the group undertook
rationalisation of the staff which resulted in restructuring of the group,”
Bamburi says in its latest annual report.
“The restructuring costs which are one off, principally represent
packages for employees’ redundancies.”
The company did not say how many workers were laid off in the review
period. Its staff count saw a net rise to 822 against 808 in 2017, indicating
that the cement manufacturer hired more employees than those sacked.
The company also has a subsidiary in Uganda (Hima Cement). Cement
manufacturers’ major costs include electricity, transport and salaries. Cement
prices have been falling over the years amid increased supply of the commodity,
forcing players in the industry to focus on cutting costs to maintain or raise
their margins.
“From an industrial level, we shall utilise our new capacities to improve on availability in the market place, while continuing to drive process improvement and cost optimisation initiatives,” Bamburi said. The increased workforce reduction in corporate Kenya has been motivated by a mix of automation and the need to survive a tough operating environment. https://www.businessdailyafrica.com/corporate/companies/Bamburi-spends-Sh153m-on-laying-off-employees/4003102-5168800-sd8kkwz/index.html
