NAIROBI, Kenya, April 12 – South African (SA) retailer Builders Kenya is set to exit Kenya amid a mass exodus of the Southern African country company.
The retailer of home improvement and building material products and services says that it will close its shop on May 31, 2023.
A spot-check by Capital Business at the firm’s store at the Waterfront Karen in Nairobi showed that products were being sold at discounts as clients rush to get cheap products.
Over the last few years, SA companies have struggled to gain footing in the country amid tough economic challenges.
Only in October last year, SA retailer Massmart, which runs Games Stores, closed its Kenyan stores in December, rendering hundreds jobless.
In a letter notice to the Kenya Union of Commercial Food and Allied Workers (“the Union”), the Johannesburg Stock Exchange-listed company says it has informed all its associates and employees of the impending closure.
A copy of the notice was also copied to the labor officer.
Consequently, the firm issued a 1-month of redundancy in accordance with section 40 of the Employment Act.
Likewise, in 2020, retailer Shoprite announced that it was exiting the Kenyan market, barely two years after entering the country.
Then, the firm said it was leaving the country due to reduced shopper flow.
“Most likely we will be out of the [Kenyan] market by the end of the calendar year, meaning December, either by closing or disposing,” earlier said Shoprite chief executive officer (CEO) Pieter Engelbrecht.
“Kenya, with three stores at year-end, has continued to underperform relative to our return requirements. Post year-end, one store has been closed given the ensuing economic impact of Covid-19.”
