A tea company from Nyamira County is set to retrench over one hundred workers after a record loss of Sh16 m following dismal sales of their products in September and another projected downfall in October.
Kerito Tea Company recorded its lowest sales in September with the sales dropping from 988,000 kgs (August) to 545, 751(September) and the management attributing the loses to scarcity of tea markets abroad.
Speaking during a meeting on Wednesday, Managing Director Stephen Kariuki said the management would be compelled to reduce the number of workers to significantly cut the wage bill to avoid possible collapse.
“We have issued a notice to a number of workers and from next week, they will be able to know their fate. We have to reduce the wage bill if at all we want to remain relevant in the global market. We are doing badly in terms of sales globally due to weak markets and stiff competitions,” he said.
He however ruled an amalgamation with the neighboring Kipkebe Tea Company following an advice from a section of workers.
“The management had received request to have the company amalgamated with Kipkebe but that is impossible because we have to change the entire system. We have to cut the number of workers and that will be effected from next week,” he added.
He said experts had projected another dismal performance in October but insisted those who will be affected will be reabsorbed when the problem is fixed.