Keroche Breweries to Cut Costs After Government's Ban on Alcohol Sale
Kevin Namunwa  |  Jul 29, 2020

Barely two days after the president announced new restrictions in response to the rising numbers of COVID-19 cases, Keroche Breweries has been forced to cut costs.

The brewer has resorted to deep cost-cutting to ensure the business stays afloat amid the economic crisis caused by the global pandemic.

Tabitha Karanja, the company’s Chief Executive Officer (CEO), said that the firm has already scaled down operations, only retaining staff offering critical services.

She further added that COVID-19 is a global phenomenon that has affected many companies and Keroche Breweries Limited is no exception.

“It is a global phenomenon and just like many companies around the world, we have to adapt to measures that will enable us survive the critical period,” said Mrs Karanja.

Keroche had started adapting to the new normal as it increased its online presence and embraced home deliveries. The recent directive by the government hugely affected Keroche which had already devised ways to maximize their profits and retain its customer base during the pandemic.

Mrs Karanja further stated that Africans are not used to drinking from home. This, according to the Keroche boss, is the main reason why business has been terrible during the pandemic.

Some employees at the company had proceeded on unpaid leave, while others had their stay home period extended. The company now remains with staff offering critical services.

CEO Supports The President’s Directive

Despite the gruesome effect the pandemic is having on her firm, the CEO said she supported the presidential order on selling of beers.

"The move is aimed at helping to curb the spread of the virus and I totally support it," noted Mrs. Karanja.

“It is apparent we will be forced to change our business model to cope with the evolving business situation in order to stay afloat," she added.

Mrs Karanja is hopeful that the business will bounce back after the pandemic. The company has been growing steadily after it launched 18 years ago in a market that was then dominated by East African Breweries Limited (EABL)


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