By The Weekly Vision Reporter
A number of employees at Bio Food Products Ltd have been left reeling after receiving redundancy letters, with management citing a company-wide restructuring exercise as the reason behind the mass exits. In a letter seen by The Weekly Vision, the dairy processing firm confirmed that several positions, including those of Customer Service Executives in the Plan and Deliver Department, had been declared redundant.
The company stated that the decision followed “a thorough and transparent process” in line with Section 40 of the Employment Act, 2007. The redundancy package outlined in the letter includes one month’s pay in lieu of notice, severance pay equivalent to 15 days’ salary for each completed year of service, payment for accrued leave, and service pay as per an earlier communication issued in August 2023. Employees are also required to return all company property before receiving their certificates of service.
However, some former employees who spoke to The Weekly Vision expressed dissatisfaction, alleging that Bio Food Products is seeking to dismiss staff without paying their rightful dues and benefits. “By now, the company ought to have settled all outstanding payments so that each person knows whether to proceed to court or let the matter rest,” one former employee said.
The affected staff claim that an agreement between the company, a partnering bank, and an insurance firm has since collapsed, leaving the financial burden on employees. “Ask yourself why there have been three different redundancy exercises in five years, yet the management continues to hire new people in the same positions. It appears to be a trend, laying off long-serving staff who earn more and replacing them with lower-paid recruits,” another source alleged. They have called on the Ministry of Labour to investigate the company’s activities.
Beyond the redundancy payouts, Bio Food Products says it has organised a series of sessions to help affected staff transition, including wellness support, pension planning, CV writing, and job search guidance. Consultations with I&M Bank and Vanguard Sacco have also been scheduled, signalling concerns among staff about loan repayments and savings locked up in retirement schemes.
According to the company’s communication, employees below 50 years of age will be allowed to access only 50% of their pension contributions (excluding NSSF Tier II), while those aged 50 and above can withdraw their full contributions. The processing period is expected to take at least 30 days once all documentation is completed. Employees who secure alternative employment before the end of the notice period may opt for early voluntary exit, subject to written consent.
The company maintains that all relocation requests and consultations were handled fairly. However, insiders who spoke on condition of anonymity told our writer that the process was rushed and morale among staff has plummeted. “We were simply called in, given letters, and told to attend counselling sessions. Many of us don’t know how we’ll service our loans next month,” one worker lamented.
With Kenya’s job market already under strain and the food manufacturing sector battling high production costs, the redundancies at Bio Food Products highlight deeper challenges facing local firms. Industry watchers warn that more companies could follow suit as they restructure to survive a difficult business climate.
For now, the affected employees can only wait for their severance cheques, plan their next steps, and come to terms with an uncertain future.
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