1,364 jobs lost in Covid-19 era cost-cutting in Sasini

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Agricultural firm Sasini Plc minimized its workforce by 1,364 in the year ended September, which represents one of the largest retrenchments conducted by a Kenyan listed company during the Covid-19 pandemic era.

The firm had a total of 2,520 employees across its tea, coffee, and other operations at the end of the period a reduction from 3,884 workers in the prior year, according to disclosures in the Nairobi Securities Exchange-listed firm’s latest annual report.

However, it was not precisely clear on the number of employees that were on short-term contracts and the retrenchment costs by the company.

The retrenchment was a proactive step to decrease costs as a buffer. Despite the increased sales and profitability, the pandemic’s longevity is unknown,  thus downsizing cushions the anticipated weaker earnings growth.

The sales rose by 48.3 percent to Sh4.1 billion in the review period compared to Sh2.7 billion a year earlier contributing to theSh12.6 million net profit.

The staff in the tea estate declined by 930. Other operations experienced a job loss of 258 employees to 80 while the coffee division decreased by 176 to 757.

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Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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