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Job losses, pay cuts a reality as car dealer plans lay-offs

BUSINESS
By Wainaina Wambu | May 6th 2020
By Wainaina Wambu | May 6th 2020
BUSINESS

Motor dealer DT Dobie is the latest company to issue a redundancy notice to workers amid the economic disruption caused by the Covid-19 pandemic. Job loses

In a letter to staff, DT Dobie Chief Executive Ian Middleton, however, said that the redundancy was not related to “the ongoing challenges of the Covid-19 pandemic” but had been long time coming owing to falling business for the firm over the years.

“Management has been analysing the financial position of the company constantly and the decision to re-structure was taken at the end of the previous calendar year,” Middleton said.

Companies that were already facing financial difficulties have found it hard to weather the Covid-19 pandemic and have been forced to send workers home or slash their salaries.

On Labour Day, President Uhuru Kenyatta warned that over half a million Kenyans could lose their jobs in the next six months due to the Covid-19 pandemic.

“My government is working to cushion, from the effects of the virus, the most vulnerable members of the society, especially low income earners,” Uhuru said at State House, Nairobi, referring to the zero pay-as-you-earn tax on those earning up to Sh24,000.

The most affected sectors by the pandemic are aviation, hospitality and tourism, agriculture and transport.

Already some 133,657 Kenyans are said to have been rendered jobless according to a report tabled before a parliamentary committee last week.

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