Friends
There are in addition two very important points we ned to realize in this
thread.
A} There is a huge mistake we do in African countries to push the price of our
goods and services to as high as we so can to get money out of the tourists. So
we remain in Kenya a third world country but we racket up the prices of
everything we sell but service as if we are in United Kingdom, for we are
targeting UK. Look very closely to Kenya hotels, they are too expensive to even
by Toronto standards. And when you do not sleep in those you go way low than in
a worst slum. This kind of economic structure is very visible in Kenya for they
build their economy to appease a white man but get money from white man. I have
travelled to Cuba very many times, their tourism is so competitive for it was
built to create jobs and an economy in the country. I have tried to book to
Varadero two times and I still cannot get the hotel I want for everyone is
targeting it. But again it costs me under 1000 dollars for an inclusive
vacation, all food I want all alcohol I want and I will be protected until when
I get out. The Cuban Police keeps an eye out when we go in and drink and dance
that if a Cuban tries to get out of line they arrest him very immediately. And
why? Because tourism is a major income in the country and they need us than we
need them. Try getting off BA in Nairobi for a single week with 1000 dollars as
pocket money and see how you will fail to reach Tuesday. Kenya on the other
hand, creates a tourism industry built to appease Pat Anderson, a white woman,
and targets her American express card, and if you get a problem in Kenya as a
tourist, the security forces do not care especially when you are black. So as
society changes that the Pat Andersons are dying off of age, and their kids are
targeting Cuba than the Masai Mara crap, Kenya needs to start to target us as
Africans to go into Kenya and enjoy as we do in Cuba.
Based on the above argument, these companies were built on European standards,
and have been paying way up than any other African company, as many companies
are moving manufacturing to Mexico and China you simply cannot sit in Kenya for
you are Cadbury and manufacturing, you will move to a cheaper employment and
those Kenyans will be unemployed. I am surprised Cadbury has taken this long to
move out.
B} Companies are not only moving because of environmental regulations, they
move also due to societal changes. And let me say this for the very first time,
if you are employed into a cereal company in North America, companies like
Special K, Weetabix and so on, start to look for a job. And do you know why?
People are no longer eating cereal as they used to do on breakfast. No we
stopped that. Who eats Cereals anymore? Even kids eat it at a very slow rate it
is no longer the fun it was in the 70’80’s for better foods for breakfast have
come up and cereals have just been beaten off the radar. Adults hate milk for
as you grow up your body starts to have a problem with milk digestion, when you
do not do milk you do not eat cereal. Go in your store and see how much cereals
they are stocking up, it is getting lower and lower for with time we will
actually stop to eat Weetabix at all. When we change what eat we can change
what we drink and Cadbury has been around the house for a while.
It is a very fascinating turn of events that the war is not only limited to
electronics but to what we eat as well.
EM
On the 49th Parallel
Thé Mulindwas Communication Group
"With Yoweri Museveni, Ssabassajja and Dr. Kiiza Besigye, Uganda is in anarchy"
Kuungana Mulindwa Mawasiliano Kikundi
"Pamoja na Yoweri Museveni, Ssabassajja na Dk. Kiiza Besigye, Uganda ni katika
machafuko"
From: [email protected]
[mailto:[email protected]]
Sent: Thursday, October 02, 2014 1:20 PM
To: [email protected]
Subject: Re: {UAH} Pojim/WBK: Cadbury to shut Nairobi factory at end of month -
Business - nation.co.ke
WBK:
I don't think anyone would blame this business decision on the young Jubilee
government. Moreover, as you are pointing out, companies close shops and more
offshore or even with the same country, for various reasons.
Here in California, a few companies have found our environmental regulations,
tax obligations and labor demands too heavy for them. So, they have moved to
states with more relaxed regulations like Texas and Arizona. Just last month,
Tesla Motors, the pioneering electric car maker, announced that it will set
shop in Nevada for its lithium battery manufacturing operations.
But Cadbury and producers of sweetened products are also experiencing declining
sales around the world, as everyone seems to be more watchful of their diets
these days. Pepsi and Cocoa Cola are facing all sorts of market resistance
because their products have been identified as major contributors to weight
gain, diabetes and all sorts of life-style health problems.
I'm curious, though, about Cadbury's announcement that it will import their
products from Egypt, rather than relocate to Egypt and continue manufacturing
operations there!
On Thursday, October 2, 2014 9:56 AM, WB <[email protected]
<mailto:[email protected]> > wrote:
Mr. Pojim:
That is not surprising. It is what economic theory predicts. Kenyan labour is
no longer cheap for these firms. It should not be seen as failure of the
Kenyan state. Not long ago I passed by Youngstown, Ohio, which used to boast
some of the largest steel manufacturing industries in the USA and the world for
that matter. Not anymore. They closed shop as South Korea became more
competitive in steel production. The circle will change for South Korea too as
other countries get more efficient at it.
So what did Youngstown do? Of course it lost the better paying-read unionized
jobs-but reinvented itself as life must go on. Today one of their leading
sectors is prisons. They built two huge prisons. The jobs may not pay as much
but the city had to fight back.
What is happening to Nairobi or Kenya happened to Jinja several years back. I
hear many Ugandans including in UAH lament or bemoan the demise of Jinja. Get
over it. It would have happened irrespective of who was president of Uganda.
That is to say Uganda, Kenya, even the USA for that matter could not resist the
forces of globalization.
In a nutshell Kenya is not the first nor the last to endure factory closures
and relocations. It happened to the USA, Canada, Europe, Japan and will soon
happen to China as global capital seeks cheaper labour.
But I know what is going to happen in Kenya and online blogs: blame Jubilee
govt. That is the cheap thing to do.
Of course I feel for the sea of masses who walk to the Industrial area every
morning. That is not good news but Kenyans must embrace "creative destruction".
Please once again read that HBR article in October issue I recommended by Roger
Martin. It talks about the talent economy and how they are taking it in.
Kenya and Uganda with an educated population grassing in urban centres should
pursue some of the call centre business. But to do so, they must fix their
landlines, improve electricity reliability and for Uganda work ethic which is
almost nil
WBK
_____
Date: Thu, 2 Oct 2014 10:38:21 -0400
Subject: {UAH} Pojim/WBK: Cadbury to shut Nairobi factory at end of month -
Business - nation.co.ke
From: [email protected] <mailto:[email protected]>
To: [email protected]
<mailto:[email protected]>
http://www.nation.co.ke/business/Cadbury-to-shut--Nairobi-factory-at-end-of-month/-/996/2471884/-/2xp0dgz/-/index.html
=
[ ][?]
WEDNESDAY, OCTOBER 1, 2014
Cadbury to shut Nairobi factory at end of month
0
Print
Cadbury Kenya has announced its intention to close down its manufacturing plant
in Nairobi this month, in what it termed as part of a global transformation
strategy to reinvent its supply chain. FILE PHOTO
In Summary
* The company said it would cease all manufacturing operations in Kenya
by the end of this month and only retain the marketing and distribution
functions of the business.
* Its exit means that about 400 people will have lost their jobs in a
week, factoring in the 99 employees of Eveready whose services have been
terminated.
* “The decision has been taken after careful consideration and extensive
due diligence, and allows Cadbury Kenya to invest in creating a more
commercially focused business in East Africa, with Kenya as its hub,” said Ms
Navisha Bechan-Sewkuran, the firm’s corporate and government affairs lead for
Southern, Central and Eastern Africa.
By John Njiru
More by this Author
Cadbury Kenya has announced its intention to close down its manufacturing plant
in Nairobi this month, in what it termed as part of a global transformation
strategy to reinvent its supply chain.
The company said it would cease all manufacturing operations in Kenya by the
end of this month and only retain the marketing and distribution functions of
the business.
It becomes the second firm in as many days to cease local manufacturing after
Eveready Ltd announced the closure of its plant in Nakuru on Monday.
Mondelçz International, the US-based parent company of Cadbury Kenya, told the
Nation that it would now “focus its resources on scale manufacturing facilities
where it can generate greater efficiencies, to reinvest in growth.”
The move will leave about 300 Kenyans who worked in the plant, either as
permanent or casual employees, jobless.
“The decision has been taken after careful consideration and extensive due
diligence, and allows Cadbury Kenya to invest in creating a more commercially
focused business in East Africa, with Kenya as its hub,” said Ms Navisha
Bechan-Sewkuran, the firm’s corporate and government affairs lead for Southern,
Central and Eastern Africa.
The company will import its products from Egypt to sell locally.
In 2011, the firm stopped making Cadbury Chocolate locally, one of its biggest
products, opting to import the products from South Africa.
The company, which has been in operation for more than 60 years, is synonymous
with tasty and high-quality products, such as Cocoa, Cadbury Drinking
Chocolate, Oreo biscuits and Trident chewing gum.
CONTINUE INVESTING
The company insisted that it would continue investing in the region in spite of
the decision to move its plant.
“It is our intention to more than double our business here during the next
three years. To achieve this, we plan to invest substantially in marketing and
our distribution network to reach more and more consumers,” said Ms
Bechan-Sewkuran.
Both companies are subsidiaries of American corporates.
An insider at Cadbury Kenya said the company was computing employee benefits
ahead of their dismissal.
“We are a company which treats its employees with fairness and respect, and we
adhere strictly to national labour laws and regulations, as well as
international best practices,” noted Ms Bechan-Sewkuran.
Other manufacturers that have closed production lines in the country include
Kenya Breweries, Reckitt Benckiser, Procter & Gamble, Bridgestone, Colgate
Palmolive, Johnson & Johnson and Unilever.
Reckitt Benckiser, a global home and personal care giant, left Kenya and now
uses the services of Orbit Chemical for its JIK, Dettol and Harpic brands.
Colgate, another casualty, has also shipped out. The trend should worry the
government which is charged with creating an enabling environment for new and
existing investors to operate. This is meant to creation more jobs in the
economy.
“There are regulatory aspects that do not support the country’s bid to attract
foreign investments. Issues like existing non-tariff barriers make the country
less competitive,” said Ms Betty Maina, the chief executive of the Kenya
Association of Manufacturers, on Wednesday.
More in SectionExporters to pay Sh100 million a week on goods sold in Europe
More in SectionExporters to pay Sh100 million a week on goods sold in Europe
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