Tsogo Sun, a hospitality group based in South Africa has confirmed closure of the Southern Sun Mayfair Hotel, Kenya.
According to Business Daily, the company will cease operations in Kenya at the end of the month after sending all its employees packing.
“Employee contracts have been terminated after due consultation. All staff have been provided with the necessary support aligned with the labour laws,” the daily quotes the multinational.
“Tsogo Sun Hotels confirm that the Southern Sun Mayfair Nairobi in Kenya will not renew its lease and will officially cease operations on the January 31, 2020.”
The hotel kick started it’s operations in 2010 but has been faced by major competition. The number of rooms available in Kenya grew by 5.2 per cent in a spun of 8 years to hit 20,000.
A report by Hotel Chain Development Pipelines in Africa 2019 shows that 27 more hotels will be launched in Kenya which means 4,232 new hotel rooms by 2023.
The rate at which Kenyans have been losing jobs was at an all time high. As at October 2019, 2,000 individuals lost their jobs.
Then, nine firms had sent home employees as others announced plans to retrench the staff.
They included East African Portland Cement Company (EAPCC), Telkom Kenya, Stanbic Bank of Kenya, East African Breweries Limited (EABL), Sanlam Kenya and Ola Energy.
Betting giants; Betin and SpotPesa also closed shop after getting into trouble with the government over tax arrears.
According to Kenya Economic Survey 2019, unemployment stood at 9.3 per cent in 2018, with the GDP at 8.56 trillion.
According to the World Bank, an estimated one in five young people in Kenya are jobless yet the Jubilee government promised the youth 1 million jobs.