Sameer shuts its tyre business laying off 73 employees

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Sameer Africa will dismiss 73 employees at the end of this month following its closure of the tyre distribution business, raising the number of retrenched workers to 152.

According to Sameer, the tyre business is progressively suffering despite measures implemented, including the 2016 closure of the Nairobi factory and outsource production to Asia. 

“We wish to inform you that despite the implementation of several changes in our business operations and strategy, the business has not improved, and survival of the company is and remains a major challenge,” Peter Gitonga Sameer’s chief executive wrote on April 24, 2020 to the Nairobi County Labour Office.

“Arising from the foregoing, the directors of the company, at a meeting held on April 20, 2020, resolved to close down the tyre business. It is therefore contemplated that approximately 73 employees drawn from both management and union sable cadres will have their employment contracts terminated on account of redundancy.”

The tyre distribution sale accounts for 90 percent of the firm revenue, and its closure has not been disclosed to the investing individuals which have created criticism from a section of shareholders. 

“They have closed the tyre business and are selling assets without involving shareholders,” said the second-largest shareholder in the company, Patrick Njoroge.

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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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