Hundreds of Kisumu residents are bracing for job losses following Carrefour Kenya’s announcement to close its Kisumu Mega Plaza store on November 30, 2024.
In a notice dated November 27, Carrefour, operated by Majid Al Futtaim Retail, attributed the closure to a strategic evaluation aimed at ensuring long-term sustainability in Kenya.
“After careful consideration, we have decided to close this location effective November 30, 2024. This decision was made as part of a strategic evaluation to ensure the long-term plans for Kenya remain feasible and sustainable,” the notice read.
The closure will not only impact employees but also hundreds of local suppliers who have relied on the store to market their products.
The retailer, which has 25 stores nationwide, assured affected workers and suppliers of support during the transition. Suppliers were encouraged to liaise with their category managers for guidance and assistance.
“We highly value our partnerships and want to assure you that this does not reflect any change in our commitment to our suppliers. We will continue to work closely with you to ensure a smooth transition and minimize disruptions,” the notice added.
Carrefour entered Kisumu in 2021, launching two outlets at Mega Plaza and United Mall. At the time, Franck Moreau, Carrefour Kenya’s Country Manager, praised the region’s potential and promised significant job creation, with over 200 residents benefiting from direct and indirect employment.
Kisumu Governor Anyang’ Nyong’o welcomed the investment then, vowing to create a conducive environment for investors. However, the closure has sparked speculation about challenges in doing business in the region.
While Carrefour cited strategic considerations, locals are raising concerns over the economic repercussions of the closure. The shutdown highlights the broader challenges faced by businesses in Kisumu, leaving questions about the city’s investment climate unanswered.
