South African construction and building materials retailer, Builders, is closing its business two and half years after it set foot in Kenya.
In a statement dated February 1, 2023, Builders Warehouse attributed its planned exit from Kenya to persistent financial losses and poor performance.
“As a result, the business has had to consider closing Builders Warehouse Karen Waterfront in Nairobi, Kenya. We have initiated the process required for potential closure,” the firm said in a notice dated Feb. 1, 2023.
The company invested 500 million Kenyan shillings in its retail shop in 2020.
Other South African companies that closed shop include Shoprite Holdings Ltd, and Game Stores.
South African proprietors of Nairobi’s Fairview Hotel, Town Lodge and City Lodge Two Rivers also exited the local market over mounting debts.
In 2017, South Africa’s Tiger Brands exited Kenya after selling its 51% stake in Haco Tiger Brands to the late Chris Kirubi, who held the remaining 49% stake.
The East African reports that the Kenya Private Sector Alliance (Kepsa)has acknowledged that the exit of South African firms from the country is an issue of concern.
“Not sure why South African investments have found it hard to invest in Kenya, unlike others. We are trying to find out their unique issues as we deal with other business environment issues affecting business as we always do,” says Carol Kariuki, the Kepsa chief executive.
