Oil marketing company Ola Energy has announced plans to downsize its workforce in Kenya as part of a restructuring initiative aimed at improving profitability and expanding its local market share over the next five years.
The company, which did not disclose the exact number of affected employees, cited a challenging operating environment that has made it difficult to sustain its current fixed costs. In a statement issued on Wednesday, Ola Energy expressed regret over the decision but emphasized that the redundancy program would be handled with sensitivity and in compliance with Kenyan labor laws.
“It is, therefore, with deep regret that we need to implement a redundancy program,” the statement read. “The process will be managed with the utmost sensitivity and in full accordance with the laws of Kenya.”
Ola Energy operates over 1,200 service stations across 17 African countries, employing approximately 1,500 people directly. The current layoffs mark another round of job cuts following a voluntary early retirement exercise in 2019 when the company had 189 employees.
The oil marketer joins a growing list of high-profile companies in Kenya that have recently announced layoffs, attributing the decisions to a tough business climate despite government reassurances of economic stability.
In November last year, Tile and Carpet Centre reduced its workforce at its Athi River production plant, citing economic and production challenges. Similarly, global security firm G4S announced the dismissal of 400 workers, while advertising giant WPP-Scangroup laid off 102 employees in May 2024.
Ola Energy’s move underscores the broader economic pressures facing businesses in Kenya, as companies across various industries grapple with rising costs, market volatility, and shifting economic dynamics. As the restructuring unfolds, stakeholders will be keen to see how the company navigates these challenges while maintaining its market presence and long-term growth strategy.
