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Kenya – In a series of bold moves, President William Ruto’s administration aimed to rescue the country from financial turmoil. The removal of fuel subsidies, increased taxes, the introduction of a Housing Levy, and a floating exchange rate were key measures implemented to bolster the economy.
However, these reforms have come at a cost. Consumer inflation soared to a staggering 32% in June 2023, causing economic distress for the public. The business sector faced severe repercussions, with many companies shutting down or relocating operations abroad.
Notably, multinational giants like GSK and Unilever opted to exit Kenya due to currency challenges and dwindling consumer demand. These industry leaders, present in Kenya for decades, have transitioned to import-only models or outsourced distribution to local partners. This shift has resulted in the abandonment of factories and significant job losses.
Adding to the exodus, Procter & Gamble (P&G) has announced its imminent departure from Kenya in January 2024. The company’s Managing Director revealed that P&G would cease production of renowned products such as Pampers, Ariel, and Oral B. Citing the harsh macroeconomic conditions in Kenya, P&G expressed the difficulties faced by the US-based corporation in sustaining operations within the country.
The departure of major companies raises concerns about Kenya’s economic stability and its impact on employment. As the nation grapples with the unintended consequences of these reforms, the future remains uncertain for both consumers and businesses alike.