Twiga Foods has laid off a number of its staff and reduced allowances of those remaining, just months after pumping KSh 1.6 billion into the business.
According to Business Daily, the agri-tech firm has changed its operations into an agency model for its sales team.
This is even as the company transitioned all its trade development representatives to agents.
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At the same time, Twiga Foods cut its staff per diem to KSh 1,000 up from KSh 4,000 with a single room bed and breakfast accommodation also provided.
“As a result of this transition to the agent model, your employment with Twiga will terminate on November 30, 2022. We invite you to transition into a new relationship with Twiga as an agent effective November 1, 2022,” read a notice to the staff.
The company added that members of the sales team who will not accept to work as agents will be allowed not to work during the one-month notice period to enable them to seek alternative engagements.
The company has also limited its employees’ travel allowances in the restructuring plan.
“The travel allowance will include all costs related to the movement of the employee in her/his personal vehicle to attend to the business of the company. Executives will identify employees in their team, whose jobs fit the criteria for a travel allowance,” said the firm.
As earlier reported on WoK, Twiga Foods was among brands on the Kenya Revenue Authority (KRA) radar over alleged unpaid duty.
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At the time, KRA was seeking to auction goods imported by the firm.
In a notice gazette, KRA said the goods include 5,130 boxed of imported onions belonging to Twiga Foods and Bamburi’s 29 containers materials used in clinker making.
KRA has demanded the firms to clear the goods and the unpaid taxes in 30 days failure to which action will be taken.
During the auction, prices are determined by expenses such as the duty due, the expenses of removal and sale, the rent and charges due to the custom, port charges and freight.
The reserve price of goods offered at an auction is set by the Commissioner which includes duties, expenses, rent, freight and other charges and goods cannot be offered at a price below the reserve price.