After Leaving Nigeria, Consumer Goods Giant P&G Set to Exit Another African Country, Gives Reasons
- Procter & Gamble (P&G) will leave Kenya due to the hostile business environment
- This comes a week after the American multinational cited similar reasons for exiting Nigeria
- The company said it will now focus on dealing directly with a distributor importation model
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market
American multinational consumer goods manufacturer, Procter & Gamble (P&G), has disclosed its plan to leave Nairobi in 2024 citing macroeconomic issues in the country.
Source: Getty Images
This announcement followed the recent decision of the company to end its Nigerian, transitioning into an import-only model, citing unfavorable business conditions.
This is as reports highlighted how a recent wave has swept some multinational companies in Nigeria out of the country due to the toxic environment for business.
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Company declares intention
The FMCG company notified its workers, contractors, and government officials in Kenya of its intention to exit.
It stated that the corporation would eliminate all ground assistance that had assisted in gaining a local market share within the company and concentrate on dealing directly with a distributor importation model.
“We first heard it as speculation, but now it has been confirmed; they have even informed the Ministry of Labour that the last month of operation will be in June 2024,” it said in a statement.
About 30 direct employees and contractors in Kenya will be impacted by the company's departure, according to a report by BusinessDay.
It seemed that the nation's high tax and interest rate environments are making it difficult for enterprises to operate there.
About 53% of CEOs at businesses reported lower sales for the three months that ended in September, according to a Central Bank of Kenya (CBK) survey.
“They do not anticipate much recovery even as the festive season sets in,” CBK said.
The local company deals in the consumer goods market for brands including Pampers, Always, Ariel, Downy, Gillette, and Oral B.
“Think of what you vave”: PZ sends clear message on ‘plans’ to leave Nigeria after over 100 years
Legit.ng earlier reported that PZ Cussons Nigeria Plc debunked several media reports that it plans to exit Nigeria.
The Nation reports that a senior company official said shareholders have decided to continue operations in Nigeria.
The company's shareholders, according to the report, want to consolidate their over 124 years business cycle in Nigeria.
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Source: Legit.ng
