Kenya: Game Stores, Employees Settle on Employee Benefits, Closure

Nairobi — South-African retailer Massmart that runs Games Stores has reached an agreement with its employees on store closure as well as employee benefits.

The Company and the Kenya Union of Commercial Food and Allied Workers have agreed on closure rationale as well as terminal benefits for workers.

On October 4 2022, the Company initiated a redundancy process in accordance with section 40 of the Employment Act, 2007 by notifying employees.

Decision to close all Kenyan units arose from tough economic challenges.

“The parties have reached agreement regarding termination of employment as well as the terminal benefits payable to all of the associates who are members of the Union as a result of the redundancy,” the workers union as well as Game Stores agreed in a letter signed by each representative.

Some of the approved areas include store closure, termination date and ongoing liquidation process as well as terminal benefits.

Agreement document seen by Capital Business reveals that termination will be effected on December 31 2022. Associates will also receive their December salaries.

“The parties agree that from the date of signature of this agreement to the Closure Date, the associates will continue to use their best endeavours to assist the Company in successfully reducing stock in accordance with the ongoing stock reduction process.”

On terminal benefits, associates who have worked with the company for less than five-years will receive a one-month pay notice while those with more two-months.

“The Company will pay associates a one off payment of Sh35,000 (thirty-five thousand Kenyan Shillings) as a relocation allowance,” it added.

In October, Massmart that runs Games Stores announced plans to close its Kenyan stores on or about December 25, rendering hundreds jobless.

The Johannesburg Stock Exchange-listed company informed all its associates and employees of impending closure through their union.

Last year, the retailer announced plans to sell three stores in Kenya to focus on its core strengths.

It also initiated exit plans in Nigeria (five stores), Ghana (4 stores), Uganda (1 store) and Tanzania (1 store).


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