Sasini Group has slashed its workforce by 240 workers citing an increase in wage claims that have sunk the firm deep into loss and debt. The firm recorded a net loss of KSh337.7 million for the period ended September 2019.
Read Also: Sasini Group Makes KSh 337.7 Million Net Loss
Contracts for 443 workers in the tea and coffee farms were halted by the end of 2019, bringing the total workforce number to 3,884 employees, down from 4,124.
In 2019, the firm was forced to implement a 9% pay increase for the workers, alongside the 7% for 2016 and 8% pay increase for 2018 and 2019. With this increasing the firm’s expenses, they thus resorted to the use of technology in tea harvesting.
The firm’s staff costs rose by 11.8% to KSh219.7 million during the period under review, forcing it to halve its dividend to KSh0.5 against its custom of KSh1 dividend payout split equally between interim and final payout.
Sasini is one of Kenya’s major tea and coffee producers and is one of the country’s “Big 6” tea producers. The company’s headquarters are located in Nairobi and the company’s stock is listed on the Nairobi Stock Exchange. It is also a member of the Sameer Group of Companies.
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