OLA Energy Kenya to lay off staff in bid to cut costs
It said that through the restructuring it is committed to reversing the current trends and positioning the Kenyan subsidiary for sustainable growth
OLA Energy has announced the commencement of strategic restructuring of its Kenyan subsidiary, which includes a redundancy programme.
The oil marketer says the move has been necessitated by its inability to sustain current fixed costs even as it continues to implement a rescue plan to turn around its fortunes.
In a media release, the company said the restructuring process is aimed at significantly enhancing its profitability and market share in Kenya over the next five years.
“The restructuring, announced by the company, will support an aggressive sales enhancement and operating costs containment programme designed to reinforce OLA Energy Kenya’s position as a major retailer of energy solutions,” it said.
In a formal notification, the company said that over the past year, it has initiated a rescue action plan with several initiatives to turn around the trajectory the company was taking, including increasing sales and reducing costs.
It said that through the restructuring it is committed to reversing the current trends and positioning the Kenyan subsidiary for sustainable growth.
“Due to the foregoing challenges, OLA Energy Kenya is finding it difficult to sustain its current fixed costs. It is, therefore, with deep regrets that we need to implement a redundancy programme,” it said.
The company further said that the redundancy process will be managed with the utmost sensitivity and in full accordance with the laws of Kenya.
OLA Energy has 1,300 services stations in 17 countries and employs over 1,500 people. It is not clear how many of these work in Kenya.
It entered the Kenyan petroleum market in December 2006 trading as OiLibya after signing an agreement with ExxonMobil Corporation before rebranding to OLA Energy in 2018 to reflect its Panafrican ambitions.
The oil marketer joins a growing list of companies downsizing their staff to stay afloat in the midst of a tough business environment as a result of high taxes and power bills, among other factors.
Some foreign companies have also migrated to neigbouring countries such as Tanzania leading to escape new taxes and levies.
In January, Federation of Kenya Employers (FKE) CEO Jacqueline Mugo revealed that since 2022, close to 6,000 people have lost their jobs, with at least 57 companies announcing redundancies.
Central Organisation of Trade Unions (Cotu) Secretary General Francis Atwoli, however, disputed the figures.
