Xavier Radio Ug News 24 7
The region’s steel industry was rattled this week after Roofings Kenya Limited — a subsidiary of Ugandan steel magnate Dr. Sikander Lalani’s Roofings Group — abruptly announced a full shutdown of its operations in Kenya, throwing its entire workforce into uncertainty and igniting concerns back home in Uganda.
In a hard-hitting internal notice dated December 1, 2025, the company declared that it could “no longer sustain or maintain any positions” due to serious financial distress and the soaring cost of operations, effectively sentencing all employees to redundancy.
The notice, issued under Section 40 of Kenya’s Employment Act, gives staff a 30-day countdown to termination, with January 2, 2026 set as the official exit date.
But even as the company winds down, employees have been ordered to maintain “professional conduct” throughout the notice period — with management warning that any misconduct could earn them a summary dismissal, wiping out their terminal benefits.
Under the redundancy package, staff will walk away with pay for accrued leave days, severance of 15 days’ salary for every completed year of service, a Certificate of Service and any dues guaranteed by law or contract. Consultation meetings with workers and unions are expected before the notice expires.
Roofings Kenya thanked its workers for their service, insisting the process will be carried out “lawfully and transparently.”
The exit lands amid a wave of corporate collapses in Kenya. Since early 2025, firms such as CMC Motors, Al-Habib Bank, Caltex House Service Station Limited and D.T. Dobie have shut down or exited the market — a worrying trend that analysts say signals deeper economic strain.
Founded in 1994 by Dr. Lalani, Roofings Kenya has long been a key player in the steel and construction materials sector, operating out of Omega Business Park in Nairobi with additional presence in Kisumu and a manufacturing plant in Kilifi County.
Its sudden collapse is already stoking fears in Uganda, where Roofings Group is one of the country’s largest industrial employers and a backbone of the construction sector. Industry insiders are watching closely to see whether the financial tremors in Kenya could spill over into the conglomerate’s Ugandan operations.
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