Hundreds to lose jobs as Sameer Africa shuts tyre factory

Sameer Africa Chairman Erastus Mwongera (left) and Managing Director Allan Walmsley peruse through the group’s 2015 annual report during the firm’s AGM recently. [Photo: Wilberforce Okwiri/Standard]

Sameer Africa Ltd, the makers of Yana tyres, is shutting down its Nairobi plant and sending home hundreds of workers. The manufacturer will from September 30 stop production of Yana brand tyres and allied products at the Sameer Africa factory in Nairobi in what is a big blow to Kenya’s efforts to boost its under-performing manufacturing sector.

Cheap imported tyres from China and India have heavily eaten into Yana tyres’ market share, leaving it will with little option but close shop. The manufacture will instead shift its production base to China and India as it seeks to navigate the country’s high cost of production.