Hundreds of Kenyans were left homeless after several multi-billion ventures shut down their operations in Kenya.
Difficult market conditions, as well as funding hitches, wiped out the multi-billion which were drivers of the country's economic growth.
The closure pointed to a continued deterioration of the business sector in the country, also occasioned by the global recession and inflation pressure.
Hilton Hotel
After 53 years of operation in the country, Hilton announced plans to exit the Kenyan market on December 31, 2022.
The Five-Star hotel began operations in the Nairobi Central Business District (CBD) on December 7, 1969, after then-President Jomo Kenyatta opened it.
Hilton Hotel had 287 rooms offering suite services and attributed its closure to declining business in Nairobi CBD.
However, to address the issue of job loss, Hilton promised to deploy its staff in other branches in other facilities in Hurlingham and Mombasa Road (Garden Inn).
GSK
In October 2022, GlaxoSmithKline, a British multinational pharmaceutical and biotechnology company, announced the end of its operations in the country.
This was after six decades of the company’s operations in Kenya.
Before ending its operations, it played an important role in the Kenyan market by introducing Mosquirix, a malaria vaccine designed to reduce child mortality.
However, the company clarified that the Nairobi Industrial Area plant will continue to operate under GSK’s stand-alone affiliate Haleon, a consumer healthcare venture that sells Sensodyne and Panadol.
Kune Food
In June, Kune Food, a Nairobi-based cloud Kitchen startup, announced its closure.
Kune Foods founder Robin Reecht attributed the closure to the tough economic times.
He noted that despite offering food at an affordable price of around Ksh352, their sales recorded an all-time low, dimming their fortunes.
In June 2021, Kune Food raised Ksh107 million in pre-seed funds to launch the on-demand food service startup.
However, its short-lived operations forced the owner to exit the Kenyan market.
Notify Logistics
The high cost of operation forced Notify Logistics to end its operations in the country.
Through a statement in September, the company attributed its closure to the global recession and inflation in the country.
When Notify started in 2018, its business model was quite attractive as it focused on renting out shelves to vendors to run its operations.
However, the model failed, compelling the company to end its operations in the country.
NopeaRide
Kenya’s first fully electric taxi service, NopeaRide, announced its exit from the Kenyan market after its parent company EkoRent Oy failed to raise additional funding to keep it afloat.
NopeaRide, the local subsidiary of the Finnish company, filed for insolvency, bringing to an end the operation of the electric tax business.
"We have taken our fleet of electric vehicles off the road and have notified our staff and corporate clients. We are now working with relevant authorities to ensure that our operations are wound up in accordance with local legislation," the company's statement dated November 30 read in part.
In 2021, the company raised Ksh25 million to increase its service radius in anticipation of growth.
However, the expansion plan failed, forcing it to file for insolvency.
WeFarm
In July, the Agritech company, WeFarm, closed down one of its services, the WeFarm shop, barely a year after setting it up.
WeFarm shop was an application that the company developed to help farmers acquire agricultural products online and share reviews and advice with each other.
WeFarm’s Director of Growth, Sofie Mala, attributed the shop shut down to current market conditions, affecting its scale-up model.
The company has connected over 2.5 million farmers in Kenya, Uganda, and Tanzania since its establishment in 2014 by Kenny Ewan.
Others include Wasoko and Sendy, which had raised millions before announcing their exit due to unfavourable market conditions in the country.
Furthermore, Business Registration Services (BRS) on Friday, December 2, listed over 108 companies on the verge of being dissolved for failing to abide by the set regulations.
The listed companies included Riverfront Estates Limited, Rosslyn Two Rivers Limited, and Rosslyn Two Rivers Limited, located in the affluent upper-market estates in Nairobi.
BRS, however, advised the owners to lodge complaints before February 2023.
