Brookside Dairies a company associated with President Kenyatta’s family has been reported to be struggling in a tough economic environment with its subsidiaries suffering a possibility of getting closed down.
Thanks to losses, the company has announced to cease its Wumingu branch in Taita Taveta from operating at the beginning of March citing tough financial season.
The Wumingu Cooling Plant had the capability to process up to 10,000 liters of milk a day and now the plant will be rendered inoperational exposing locals to unforeseen joblessness and as well disadvantage farmers in the locality who used to supply raw milk to the factory.
Since 2017, Brookside has been paying more than Sh 52 million to Taita dairy farmers for supplying raw milk to the factory, now the move to close the plant being a nightmare to them.
The plant will be heaping on hundreds of others which in 2019 closed down or retrenched workers due to drastic financial situations.
From a 2019 report by the Registrar of Companies, close to four hundred companies had been dissolved in a span of five months with the situation being feared of getting more worse and tough in 2020.
Economists decry the Jubilee administration for occasioning a tough economic environment to the country, firms struggling to survive in the muddy economic waters. They go on to warn the situation may buzz even more in 2020 going forward if favorable economy-friendly policies are not effected.
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