Oil marketing company Ola Energy has become the latest firm in Kenya to announce job cuts, citing a difficult business environment and the need to restructure for future growth. The company, which operates in 17 African countries, confirmed on Wednesday that it would be implementing a redundancy program, though it did not disclose the exact number of employees affected.
Ola Energy stated that its current operating environment is unsustainable in terms of fixed costs, prompting the firm to take measures to enhance profitability and market share over the next five years. Since 2024, the company has been implementing a “rescue action plan” aimed at improving its business trajectory, focusing on increasing sales while cutting costs. The restructuring, which includes job cuts, is part of this broader strategy.
“It is, therefore, with deep regrets that we need to implement a redundancy program,” Ola Energy said in a statement. The company assured that the process would be handled “with the utmost sensitivity and in full accordance with the laws of Kenya.”
Ola Energy, which operates over 1,200 service stations across Africa and employs 1,500 people directly, has made similar moves in the past. In 2019, the company reduced its workforce through a voluntary early retirement exercise when it had 189 employees in Kenya.
The oil marketer joins a growing list of firms cutting jobs in Kenya in response to economic challenges, despite the government’s insistence on a stable economic outlook. Several high-profile companies have undertaken similar measures in recent months, pointing to a tough operating environment.
In November 2023, Tile and Carpet Centre announced layoffs at its Athi River production facility, citing economic and production difficulties. Similarly, global security firm G4S laid off 400 employees, while advertising giant WPP-Scangroup cut 102 jobs in May 2023.
The wave of layoffs across multiple sectors raises concerns about the overall business climate in Kenya, as firms grapple with high operational costs and shifting market dynamics. The ongoing job cuts highlight the need for strategic interventions to support businesses and protect employment opportunities amid the challenging economic landscape.
