Southern Sun Mayfair Hotel in Nairobi is closing down after firing all their employees. Tsogo Sun Hotels, the South African hospitality group that owns the hotel announced their closure as from end January.
At the moment, all employees’ contracts have been terminated. Tsogo Sun confirmed the information and made it clear that they wouldn’t be renewing its lease in Kenya after 31 January, 2020.
“Tsogo Sun Hotels confirm that the Southern Sun Mayfair Nairobi in Kenya will not renew its lease and will officially cease operations on the January 31, 2020,” They said.
The news has sent Kenyans barraging on Twitter over the deteriorating state of economy. Some blame such closure on the government while there are those who argued that the hospitality market has become too congested.
There are those whose main concern was whether the employees sent packing had received their dues as per the labour laws.
Mayfair hotel in Nairobi closes. The hospitality market is becoming congested with surplus investment. With current dwindling spending power of Kenyans, some will not survive. Instead of Economic stimulus package, President Uhuru govt is introducing patriotism tax ….. @tonimugo pic.twitter.com/aswSp72rIo
— Dennis maina (@Dennismaina4) January 10, 2020
Sad to hear. At the very least, hope that the Mayfair Hotel staff actually receive their terminal dues.https://t.co/A26g3jrMdF
— comparerateskenya.com (@comparerateske1) January 10, 2020
As much as there is an Economic Meltdown Methinks Mayfair Hotel closure is due to competition(proliferation of new hotels in the capital especially that… https://t.co/HRJ4B2qcep
— william (@WilliamMutama) January 10, 2020
This is what the management had to say, “All staff have been provided with the necessary support aligned with the labour laws.”
The picturesque hotel, which hosts a total of 171 rooms must have bowed to the increased competition in the hospitality market caused by several new entrants. Existing brands have also kept their game high through rebranding and other strategies which could have brought the market giant down as the year starts.
According to the Hotel Chain Development Pipelines in Africa report given in 2019, there are some other 27 hotels coming soon in Kenya. Market players therefore ought to get ready for even more competition and strategize on some unique means of survival.
The rate at which companies are closing down in Kenya is a loud alarm that must not be ignored. Thousands of recent employees have turned jobless as downsizing has become the shortest route for companies to stay in the market.
Southern Sun Mayfair has now added to the percentage of the jobless Kenyans. Unemployment is becoming even a greater problem than it has been before when a solution is what the citizens are hopefully waiting for. It is indeed an alarming state.