NAIROBI Kenya, May 25 – Online retailer Copia Kenya has appointed Makenzi Muthusi and Julius Ngonga of KPMG as joint administrators of Copia Kenya Limited.
In a notice seen by Capital Business, the company states that all the affairs, business, and properties of the company will be managed by the appointed joint administrators.
The company stated that the directors of the company will no longer have any power over the affairs and business of the company.
The administrators act as agents of the company without personal liability.
“Any party having claims against the company should submit their claims in writing with relevant supporting documentation to the joints to the joints administrators before 23rd June 2024 for consideration,” read the statement.
This appointment comes as the retailer company, on May 19, 2024, announced plans to lay off 1,060 employees due to financial constraints.
The decision came as the company is battling ongoing financial challenges, despite efforts to secure additional funding and navigate the obstacles it faces.
“In light of our persistent financial challenges and despite our best efforts to explore avenues for additional funding, we find ourselves compelled to undertake a comprehensive organizational restructuring to ensure the sustainability of our operations, or even consider the possibility of shutting down,” it said in a statement.
Copia Kenya has initiated the process by serving affected employees with the requisite one-month notice period, as mandated by labor laws.
It clarified that the layoffs would exclusively affect individuals whose roles are directly impacted by the restructuring.
However, the company cautioned that should operations be entirely halted, all staff members would be at risk of termination.
The announcement sheds light on the hurdles confronting startups in Kenya as they endeavor to address financial woes and secure the longevity of their operations.
The startup ecosystem in the country has witnessed closures attributed to amplified taxation and operational expenses.
