No Christmas cheer for workers in retail sector as layoffs pile
John Otini
JOBS: Workers in the retail trade sector face a difficult Christmas as layoffs continue into the new year due to massive restructuring.
Newly merged Tumaini and Quickmatt was on Friday stopped from laying off 447 workers by the Employment and Labour Relations Court.
Nakumatt which has been laying off hundreds of staff is also expected to send home more workers next month.
It is, however, not clear how long the supermarkets workers will remain since the merger was created with the very purpose of cutting costs.
Nakumatt creditors are set to meet on January 7 to dissolve the company so as to salvage their monies.
This means the remaining three branches of Nakumatt will fall with hundreds more going home.
The closure of several Choppies stores saw more than 200 employees sent home. This in turn means suppliers will need to cut down production or close shop and sack more workers.
Choppies closed its branches in Kiambu, Kakamega, Bungoma and Kisumu on its journey to exit Kenya.
The shutdown of three Nakumatt outlets this month in Kisumu, Nakumatt Prestige and Lavington left scores of other workers without jobs.
Remaining stores
Many had been dismissed when Uchumi shut several outlets and the fate of the remaining stores remains unknown.
The retail trade sector is among the top five contributors to gross domestic product according to Kenya National Bureau of Statistics.
The closures and bouncing cheques have also forced suppliers to cut down production or even close shop.
The decline is evident in defaulting on rental payments and the non-payment of money owed to suppliers.
