Several companies closed shops in Kenya in 2023, with each company quoting different reasons for their exit.
However, most have cited difficult operating environments and reduced cashflows as major reasons for their exit from the Kenyan market.
Here's a list of companies which have closed shop or exited the Kenyan market in 2023:
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GlaxoSmithKline (GSK)
GlaxoSmithKline (GSK), a British pharmaceutical company, closed its operations in Kenya in December 2023, four months after exiting Nigeria.
The company has operated a manufacturing facility in Kenya for nearly six decades and will now rely on distributors to supply its products to the regional markets.
GSK attributed its exit to low sales and a shift in focus to its more profitable prescription drugs and vaccines business.
Builders Kenya
Builders Kenya, a South African retailer of building and construction materials, closed its shop in Kenya in May 2023.
Before exiting the country, the company sold its merchandise at throw-away prices in clearance sales.
"As a result of the closure of the Store in Kenya, Builders will not be accepting any returns on items purchased from us, unless otherwise prescribed by law," the retailer said in a statement.
MarketForce
MarketForce, a Kenyan B2B e-commerce company, closed shop in four out of five markets it operates in, including Kenya.
The company owns RejaReja, an app which enables informal retailers to order fast-moving consumer goods (FMCGs) directly from distributors and manufacturers and access financing.
The services of the company will only be available in Uganda after the company discontinued the offering in Kenya, Nigeria, Rwanda and Tanzania.
De La Rue
De La Rue, a banknote printer, announced the closure of its Nairobi unit due to low currency and cheque printing business.
The firm, operating in Kenya as De La Rue Kenya EPZ Limited, is reported to have used at least Ksh2.7 billion to lay off over 300 employees and pay off other contracts as it prepared for shutdown. Among the shutdown expenses include £5.5 million used on redundancy charges, £4.9 million on write off property, plant and equipment and £2 million to impair inventory.
The company is 40 per cent owned by the Kenyan government.
The firm announced its exit from Kenya after the Central Bank of Kenya (CBK) confirmed that there would be no offers for printing bank notes for at least the next 12 months.
Africa Oil
Africa Oil, one of the companies that were leading oil exploration exercise in Turkana exited the country in 2023 after paying Ksh2.17 billion between April and June to settle tax disputes with the Kenya Revenue Authority.
Africa Oil relinquished its 25 per cent shareholding to Tullow Oil, as well as Total which also ceded its 25 per cent leaving ownership of the South Lokichar oil wells to Tullow Oil.
