Kenyatta family-owned dairy processing company, Brookside Limited, has recently made headlines after firing half of its staff in Uganda.
The decision came as a result of a drop in the value of its exported products to Kenya, prompting the company to take drastic measures to align its operations with the current business landscape.
In a letter addressed to Uganda’s labour commissioner at the Ministry of Gender, Labour and Social Development, Brookside cited the Kenyan government’s failure to grant them an export permit for products such as cream, butter, yogurt, ghee, and milk powder to Nairobi. This inability to secure the permit since March 2023 has severely impacted Brookside Uganda’s ability to access 75% of its market in Kenya.
Winnie Mirembe Mugabi, the human resources manager at Brookside, revealed that the company had no choice but to scale down its operations across the entire value chain to match the current reduced business volume, which stands at a mere 25% of their normal operational levels.
Due to these circumstances, Brookside has made the difficult decision to terminate the contracts of half of its staff in Uganda. Mugabi explained that the company acted lawfully under section 81 of the Employment Act, which permits the termination of employees’ contracts for structural reasons. The retrenchment is set to take effect in July 2023.
