Peugot dealer in Kenya Urysia Limited is the latest company in Kenya to slash employee salaries, and send others on unpaid leave.
In the recent developments, the company sent a good number of its employees on unpaid leave, and those who remained suffered a 50 percent salary cut, effective May 1.
In a memo to all staff members dated April 30, the company CEO Claude Mwende said the move was as a result of the Covid-19 effects on the economy.
“In the last few months, we, like many others, have suffered substantial decline in the volume of our business as the country adjusts to the economic down-turn brought about by the pandemic. Selected members will be asked to proceed to unpaid leave until the situation overturns,” said the managing director and CEO Claude Mwende.
The company leases vehicles to the National Police Service, with at least 300 cars having been leased to the government as of 2017.
“The units were part of a fleet of 500 units in the ongoing Government lease project which is currently in its third phase. 1400 units have since been leased in the first two phases with Peugeot having 300 vehicles in the fleet,” the company said then in a statement.
In the deal worth Ksh631 million, Urysia also supplied Peugeot vehicles to other government agencies including, the National Transport and Safety Authority (NTSA), the Ministry of Health, Kenya Prisons and the Solicitor General’s office.