Layoffs in Kenya

Mobius Motors, a Kenyan vehicle manufacturer and assembler, is shutting down entirely and entering voluntary liquidation, resulting in the layoff of all its employees. The company, which had raised $56 million and produced affordable SUVs for African terrains, failed in its year-long recovery efforts due to severe financial struggles that left it unable to pay suppliers and salaries. A creditors' meeting is scheduled for August 15, 2024, following a shareholder resolution on August 5, marking the end of the mobility startup that once aimed to serve SMEs in remote areas.

Kenyan e-commerce startup Copia Global laid off 1,060 employees on June 6, 2024, following its entry into administration. The company, which operates in the e-commerce industry and once boasted a network of 50,000 agents, is undergoing severe financial restructuring. This move comes after the company struggled to meet payroll and scaled back operations, including exiting Uganda and laying off 700 employees in 2022. The layoffs were announced in a staff meeting, with employees asked to return company property and sign termination letters. While Copia has committed to providing a one-month salary and benefits per Kenyan law, the payment timeline remains unclear, causing significant concern among affected staff.

Cellulant, a Kenya-based fintech startup, is laying off 20% of its workforce as part of a restructuring effort to transition to a leaner, product-led business model. This follows a previous round of layoffs six months earlier that affected about 30% of staff. CEO Akshay Grover stated the move aims to boost operational efficiency, consolidate functions, and reallocate capital to drive growth across its 19 markets. The decision reflects the company's response to a dynamic operating environment and its goal to remain a market leader.

Twiga, a Kenyan B2B e-commerce platform, is laying off 283 employees, representing 33% of its 850 workforce, to maintain business viability amid macroeconomic challenges and capital-raising difficulties. The company is implementing strategic adjustments, including disbanding in-house delivery in favor of a logistics marketplace and transitioning to a central warehouse model, to reduce costs and enhance operational efficiency.

Twiga Foods, an e-commerce food distribution startup in Africa, laid off approximately 283 employees, representing about one-third of its 850 permanent workforce, in August 2023. The company cited a tough business environment and declining purchasing power as reasons for operational restructuring aimed at becoming a leaner and more cost-efficient organization. Despite the layoffs, Twiga denied rumors of shutting down its Ugandan operations and confirmed the continuation of its Twiga Fresh farming vertical. The affected employees across all markets are to receive severance packages in compliance with labor laws.

Kenyan logistics startup Sendy is shutting down operations and selling its assets after running out of funds, marking the end for a company once valued over $80 million. The B2B e-commerce and logistics firm, which had targeted raising $100 million last year, struggled with operational costs and pricing challenges. After a 10% workforce reduction in July 2022, Sendy laid off 54 employees in October 2022 and exited the Nigerian market in February 2023 as part of severe cost-cutting measures. Unable to secure sufficient new investment or a buyer, the company ceased operations around August 2023, leaving it unable to cover salaries and forcing an asset sale.

Copia, a Kenyan e-commerce platform focused on low-income households, has laid off 350 employees, representing 25% of its 1,800-strong workforce. This third round of layoffs in 2023, announced in July, is part of a restructuring effort to reduce labor costs and improve profitability amid economic challenges. The company, which previously closed its Ugandan operations and conducted earlier layoffs, stated the move aims to optimize operations and drive sustained profitability while complying with Kenyan labor laws. Affected employees will receive severance packages, with the workforce reducing to 1,450.

Web3 startup Mara conducted a second round of layoffs in May 2023, primarily dismissing its marketing department, affecting around six employees. This follows a previous layoff in December 2022 that cut 50% of its staff, which the company attributed to cost reduction and restructuring, not financial troubles or the FTX collapse. Mara, an African-focused crypto startup that raised $23 million in 2022, is shifting its focus from user acquisition to serving existing users and developing new projects to drive crypto adoption on the continent. Despite the layoffs, the company continues to hire in areas like engineering.

In November 2022, Kenya's B2B e-commerce and food distribution platform Twiga laid off 211 full-time employees, representing 21% of its workforce of over 1,000. The layoffs were part of a restructuring that eliminated the company's in-house sales team as a cost-cutting measure. Affected trade development representatives were offered the option to transition into independent sales agents working on a commission basis, aligning with a new optimized sales program. The agritech company, which connects farmers and manufacturers to retailers, stated the move was made in compliance with labor laws and aims to create entrepreneurial opportunities while controlling operational expenses.

CloudFactory representing approximately 12% of its workforce on 2022-11-09.

In July 2022, Kenyan B2B e-commerce platform Marketforce laid off 54 employees, representing about 9% of its then 600-person workforce, as part of a reorganization strategy in its Kenyan market. The cuts primarily affected field sales, supply chain, and customer experience roles. CEO Tesh Mbaabu explained the company was shifting from a growth-focused phase to optimizing for profitability, aiming to drive more revenue per merchant on its RejaReja platform rather than just onboarding new ones. This restructuring followed a $40 million Series A funding round earlier that year.

In July 2022, Kenyan logistics startup Sendy laid off 10% of its workforce, affecting 30 employees out of a total of 300. The company, founded in 2015 and based in Nairobi, cited global economic pressures impacting tech companies as the reason, stating the move was part of a restructuring to drive efficiency and manage costs. This downsizing followed a broader trend in the African tech sector, where startups are facing reduced venture capital funding and economic headwinds. Sendy, which had raised $26.5 million and previously aimed for a $100 million round to expand into West and Southern Africa, also reportedly paused its expansion plans into Egypt and South Africa. The layoffs highlight the challenges faced by growth-stage startups in the logistics and transport industry amid a global tech downturn.

Kune, a foodtech startup, has ceased operations, resulting in the layoff of its entire 90-person team. The company, which had grown to serve over 6,000 customers, was forced to shut down due to unsustainable business conditions. Despite selling more than 55,000 meals since the beginning of the year, pricing meals at $3 proved insufficient to cover rising food costs and maintain margins. Additionally, the current economic downturn and tight investment markets prevented Kune from securing its next funding round, ultimately leading to its closure. The founder expressed deep regret and is assisting the displaced employees in finding new opportunities while exploring the sale of the company's intellectual property and assets.