Hundreds in Job Losses as Foreign Company Hints at Exit

British oil exploration company Tullow Oil on Wednesday, February 5, announced plans to layoff an unknown number of employees in a new restructuring plan.

In a notice seen by Kenyans.co.ke, the company indicated that it has embarked on reviewing its business operations and financial performance which has constantly been affected by the company’s growing wage bill.

“These factors have affected the ability of the company to continue sustaining the human resource wage bill. 

“Resultantly, it is now inevitable that there may be job losses and redundancies at all levels and cadres of our organisation,” read the notice in part.

President Uhuru Kenyatta flags off the first exportation of crude oil at Kipevu Oil Terminal, Mombasa County on August 26, 2018.

The company further noted that the company woes were also to be blamed on the production patterns in Kenya and other African countries.

“A review of the production performance issues in 2019 and its implications for the longer-term outlook of the fields has been undertaken and has shown that the Group needs to reset its forward-looking guidance,” added the notice.

The company further noted that it had initiated talks with its employees in a bid to give more information of the intended process.

“The company invites all employees for consultations in an effort to explore any measures that can be taken to mitigate the effects of redundancy. 

“Redundancies will be implemented in accordance with employees’ respective contracts employment, the employment laws, and the relevant Company policies,” further read the statement.

According to a report published by Citizen TV on Wednesday, February 5, Tullow has a total of 650 Kenyan employees and has been the principal operator of Project Oil Kenya having started the exploration in 2010.

On December 9, 2019, the company sacked its chief executive Paul McDade due to the depressed production.

On January 15, Tullow confirmed the suspension of oil transportation through road from Turkana to Mombasa due to the poor state of local roads.

In a statement, the British company indicated that the transportation of crude oil would not continue until the necessary road constructions were done.

“In Kenya, the early oil pilot scheme (EOPS) is suspended due to severe damage to roads caused by adverse weather in the fourth quarter of 2019.

“Trucking remains on hold until all roads are repaired to a safe standard. Work continues with Joint Venture Partners and the Government of Kenya to progress the development project,” read the statement.

President Kenyatta flagged off the first consignment of crude oil for exportation in August 2018.

President Uhuru Kenyatta and Deputy President William Ruto launched oil exploration in Kenya during the inauguration of the Ngamia 8 Early Oil Pilot Scheme in Turkana County on June 3, 2018.

Kenyatta stated that the exports would help grow Kenya’s economy adding Kenya to the list of oil exporters in the world.

The president also promised that the government would move in to ensure that the local community benefited from the exportation of the precious commodity.