Hello and welcome to the Friday edition of the Evening Brief Newsletter where 1,000 kenyans are on the brink of losing their jobs.
Situational Awareness: Join our expansive community of 19,000 subscribers and get a breakdown of the day's important stories delivered into your inbox. Join them by subscribing here.
Kenyan Startup Announces Mass Layoff
Over 1,000 employees of an e-commerce company are set to lose their jobs following financial constraints experienced by the Kenyan start-up firm.
In a notice addressed to its employees, the company explained that it was planning to undertake an organisational restructure due to the tough economic times.
As highlighted in the notice, 1,060 employees will be laid off should the company not get a last-minute saving grace.
“Despite our best efforts to navigate this challenge and explore avenues for additional funding, we find ourselves in a position where we must consider a far-reaching organisational restructuring to ensure the sustainability of our operations or even a possible shutting down of operations.
"While we are working hard to try and overcome the hurdle, it is important to highlight that uncertainties lie ahead. As a result, it is very likely that there will be a reduction in our workforce and it is possible that the payment of salaries could be at risk," read the notice in part.
The company also noted that it was issuing the notice in line with the laws of the land with the 1,000 employees set to be sent packing after 30 days.
Further, the company cautioned that it was at the risk of full closure if the situation worsened. With full closure, all the staff will be declared redundant.
"If the Company implements a restructuring, about 1060 roles could be eliminated from the Company's structure and the services of the holders of those positions could become superfluous and their employment could consequently be terminated on account of redundancy.
"The foregoing would apply to you only if your role is impacted. If operations are shut down, all staff will be at risk of being terminated," read the notice in part.
Notably, in March 2023, the company laid off 25 per cent of its staff owing to financial constraints. The company also ceased its operations in the Pearl of Africa (Uganda) last year.
FYI
In today's segment of the FYI, I will break down the new government proposals for the Motor Vehicle Tax. The tax is set to generate Ksh58 billion in revenue for the government.
For starters, the tax proposal is highlighted in the Finance Bill 2024 and is a form of wealth tax.
As outlined in the Bill, the tax will be paid by all motorists at the rate of 2.5 per cent of the vehicle's value. However, the lowest tax payable will be Ksh5,000 with the maximum amount set at Ksh100,000.
The tax will be paid annually during the acquisition of an insurance cover. Through this, all motorists are expected to pay the tax as it is illegal to drive a vehicle without an insurance cover.
Below are the key pointers;
- Tax Collectors: In this case, the tax collectors will be the insurance company.
- Tax Procedure: Once the tax is collected, the money will be remitted to the Kenya Revenue Authority within 5 working days.
- Tax Penalties: "An insurer who fails to collect and remit motor vehicle tax shall be liable to pay a penalty equivalent to fifty per cent of the uncollected tax and the actual amount of the uncollected tax," read the Finance Bill
- Tax Exemptions: Vehicles exempted from this tax include those owned by the National government, county governments, Kenya Defence Forces, the National Police Service and the National Intelligence Service.
Guess Who?
Can you guess who said these words?
"President Ruto loves tea. When you sit with him, tea moves around. When I am with him, I sometimes ask to leave and go enjoy myself elsewhere. He is not a drunkard therefore his brain is always sharp. He starts his meetings from 5 am all the way to midnight."
Rains in Nairobi Estates
Meanwhile, Nairobi residents have been warned of rain over the weekend. In particular, the Kenya Meteorological Department noted that six estates would begin to experience some rain from today.
The areas that will receive rainfall between 20-50mm include Westlands, Dagoretti South, Kibra, Starehe, Kamukunji and Embakasi North.
Other areas within Nairobi will receive moderate rainfall of between 2-20mm.
Additionally, Nairobi was highlighted among the areas likely to witness very cold nights. Temperatures are projected to drop as low as 10 Degrees Celcius.
Therefore, city residents were advised to be alert and prepare for the rains.
"With moderate rains being experienced in several parts of Nairobi and likely to persist until the weekend, we urge commuters to take precautions. Be mindful of slippery roads and drive safely," Kenya Redcross advised.
Weekly Kenyans.co.ke Quiz
Do you think you are a news guru? Every week, the newsletter team brings you a 10-question quiz testing your knowledge of the top news topics for the week.
Take our quiz and test how well you understood the week's most important stories.
Here are the top five stories for the day;
- Interior Cabinet Secretary Kithure Kindiki sued for negligence over the recent floods.
- Nairobi Governor Johnson Sakaja given 7 days to explain changes in Nairobi's construction rules.
- NTSA reveals how written-off accident vehicles are registered & sold to unsuspecting Kenyans.
- Kenya to wait longer for Ksh 131 billion IMF loan; Here's Why.
- President William Ruto dealt with a fresh blow in police deployment to Haiti.
Guess Who Answer
The answer is Jalang'o. Jalang'o made the remarks while appearing for an interview on Radio Jambo on Wednesday.
