2023 was a tough year, especially for Kenyan businesses given the macro-economic shocks including inflation, high interest rates and the depreciating Kenya Shillings against the dollar.
This, among other reasons, saw several businesses halt operations leaving hundreds of Kenyans jobless. Among the companies that halted operations in Kenya in 2023, cited the difficult business environment and reduced cash flow as the major concern.
Some of the companies that closed their doors in Kenya in 2023 are;
GlaxoSmithKline
Pharmaceutical giant GlaxoSmithKline announced its exit from the Kenyan Market in mid-December 2023, barely four months after it exited the Nigerian Market.
The firm that started operation in Kenya nearly 60 years ago said it will now rely on distributors to supply its products in the regional markets.
Africa Oil
Africa Oil, one of the companies leading oil exploration exercises in Turkana, announced its exit from the Kenyan Market in May 2023.
Announcing the exit, the Canadian firm said, the move was necessitated by its shift to production and focus on high-potential exploration opportunities.
“We have decided to exit our Kenyan concessions as our strategy has shifted to focus on production and high potential exploration opportunities, including our Orange Basin portfolio where we are now appraising the exciting Venus discovery, offshore Namibia,’” Africa Oil President and CEO Keith Hill stated.
The firm relinquished its 25 per cent shareholding to Tullow Oil granting it full ownership of the South Lokichar Oil wells, after Total’s exit from the project where it also ceded its 25 per cent shareholding.
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MarketForce
Due to a cash crunch, Kenyan B2B e-commerce company MarketForce ceased operations in three of its five markets in Africa including Kenya.
The firm’s app dubbed RejaReja enables informal retailers to order fast-moving consumer goods directly from distributors and manufacturers and access financing will only be available in Uganda after the company discontinued the offering in Kenya, Nigeria, Rwanda and Tanzania.
Builders Kenya
South African building and construction materials retailer, Builders, closed its doors in February, two and half years after it set foot in Kenya.
The firm attributed its exit from Kenya to persistent financial losses and poor performance. Before leaving Nairobi, the company sold its merchandise at throw-away prices in clearance sales.
