Shoprite to Close Nyali Branch, Fire 115 Staff
Kevin Namunwa  |  Aug 5, 2020

Shoprite Holdings is set to lay off 115 workers and close its second branch in Kenya in less than five months.

The supermarket chain, which is Africa’s largest, cited reduced flow of shoppers as the reason to reduce staff. Shoprite opened its first store in Kenya in 2018 and had opened several other outlets in the country.

Shoprite has now closed its City Mall Branch in Nyali, Mombasa rendering hundreds of Kenyans jobless. In a notice to the Kenya Union of Commercial Food and Allied Workers (KUCFW), the supermarket chain said it will propose a meeting to provide financial data following the closure of the Nyali branch.

“Endeavour to continue trading at the Nyali branch is no longer viable. Financial and other data will be provided and discussed at a proposed meeting,” the notice read in part.

“It is contemplated that the intended date of termination on account of redundancy will be August 31, 2020. There are currently 115 persons employed at the branch of which 92 are members of KUCFW.”

Supermarket chain business has proved to be a difficult venture in Kenya as we have witnessed several retailers struggle to hack the Kenyan market. Tuskys supermarket is the latest victim of the gruesome industry as it now requires Ksh2 billion to stay afloat.

Nakumatt and Choppies already closed down their entire operations in the country.

“Retail in Kenya currently is in total disarray...we could now go in and secure seven premises without paying anything other than an agreed rental,” Shoprite said ahead of Kenya entry.

The company owns more than 2,800 outlets across Africa making it the largest supermarket chain in the continent.

The retailer, which is retreating in countries outside South Africa, in April closed its Nairobi’s Karen branch, shedding 104 jobs and triggering a court battle with the billionaire owners of Waterfront Mall.