Jobs worry as soap maker PZ Cussons mulls over Kenya future

From left: PZ Cussons EA Managing Director Sekar Ramamoorthy (centre), Africa MD Oghale Elueni and Head of Marketing Hafsa Arthur (left) showcase the new Venus skincare products in Nairobi, on November 22, 2024. [File , Standard] British consumer goods company PZ Cussons, the maker of Imperial Leather soap and Carex hand wash, has launched a strategic review of its operations in Kenya, raising concerns over the future of local jobs and its longstanding presence in the East African market. The move, confirmed in the company's full-year financial results published last week, is part of a broader reassessment of PZ Cussons' African portfolio, which includes its operations in Nigeria and Ghana, the company said. The review places a cloud over the fate of its Kenyan workforce and supply chain, even as the firm reported "good, volume-led growth driven by strong Modern Trade performance" in the country. The move places a question mark over the future of one of the company's better-performing African markets, even as it continues to grapple with macroeconomic challenges across the continent. The announcement has sparked anxiety among employees and its distributors, as traditionally strategic reviews often precede restructuring, downsizing, or even full divestment, especially when a multinational seeks to cut costs or sharpen its geographic focus, a move that places hundreds of local jobs in doubt. The multinational did not divulge additional details but confirmed that the comprehensive review encompasses its Family Care businesses in Nigeria, Ghana, and Kenya, along with its electrical appliances unit in Nigeria. "The strategic review of our wider Africa business is ongoing," said Chief Executive Jonathan Myers in the statement. "This comprises our Family Care businesses in Nigeria, Ghana and Kenya, and our Electricals business in Nigeria." The announcement comes despite the company reporting positive performance in Kenya, where it achieved what it described as "good, volume-led growth driven by strong Modern Trade performance" during the fiscal year ended May 2025. The Kenyan operations contributed to the Africa region's impressive 34.9 per cent like-for-like revenue growth, although this figure was largely fueled by aggressive price increases in Nigeria rather than volume growth across the continent. Myers further addressed the strategic direction, stating, "We remain committed to maximising long-term shareholder value and will provide an update as appropriate." The planned review reflects the company's challenging position in African markets, where currency volatility and economic instability have complicated operations despite some strong underlying performance. The review of Kenyan operations follows the company's recent decision to sell its 50 per cent stake in Nigerian edible oils joint venture PZ Wilmar for $70 million (Sh9.1 billion) as part of a broader portfolio simplification strategy. The company also announced it would retain its St.Tropez brand after an extensive auction process, reflecting a strategic shift toward focusing on core categories where it can maintain a competitive advantage. While the company did not disclose Kenya-specific employment figures, the potential scaling back or exit of a major player, known for brands like Imperial Leather, Carex, and Morning Fresh, could affect hundreds of direct and indirect jobs in sales, distribution, and manufacturing. "This isn't just about office jobs," said one Nairobi-based retailer who asked not to be named. "PZ Cussons has a broad distribution network and partnership here. A pullback would ripple through the entire value chain." The news comes at a time when several multinationals are rethinking their African investments due to currency volatility, regulatory hurdles, and intense competition from local firms. PZ Cussons said it would update the market on the outcome of the review in due course. For now, all eyes are on whether the company will stay, leave, or find a local partner to maintain its iconic brands on Kenyan shelves. Market analysts suggest the Kenya review could lead to various outcomes, including potential streamlining of operations, partnership arrangements with local distributors, or even complete divestment if the operations no longer align with the company's strategic priorities focused on hygiene, baby, and beauty products in more stable markets. "The Kenyan market has traditionally been one of PZ Cussons' stronger African operations," said markets analyst Ian Njoroge. "A review doesn't necessarily mean exit-it could signal everything from operational restructuring to seeking local partnership opportunities that maintain brand presence while reducing capital exposure." PZ Cussons indicated that net debt, which stood at PS112.0 million (Sh19.7 billion) at year-end, is expected to "reduce significantly" following the Wilmar disposal and other portfolio actions. The company's overall revenue fell 2.7 per cent to PS513.8 million (Sh90.4 billion), while adjusted operating profit decreased 5.8 per cent to PS54.9 million (Sh9.7 billion), reflecting the challenging operating environment across key markets. The company did not provide a specific timeline for completing the strategic review by press time when reached for comment, but indicated in its report that updates would be provided to the market as decisions are finalised. Industry observers will be watching closely for signals about whether the company will maintain its physical presence in Kenya or transition to alternative market approaches such as licensing or distribution partnerships. The announcement comes at a time when several multinational consumer goods companies are reassessing their African portfolios amid currency challenges, supply chain complexities, and increased competition from local manufacturers. PZ Cussons' decision will be closely watched as a bellwether for broader multinational sentiment toward East African operations. PZ Cussons is a UK-listed consumer goods business headquartered in Manchester, UK. It employs nearly 3,000 people across Europe, North America, Asia-Pacific, and Africa. Founded in 1884, it is one of the oldest multinational firms operating in Kenya and its portfolio includes well-known brands such as Carex, Childs Farm, Cussons Baby, Imperial Leather, Morning Fresh, Original Source, Premier, Sanctuary Spa, and St.Tropez.

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