Unga Group undergoes restructuring, company CEO takes up more roles

“I wish to notify you that our senior colleagues, Mr Andanje Mwairumba, general manager of Unga Limited and Dickson Jawichre, general manager Unga Farm Care (EA) Limited, will be leaving the company effective today,” Mr Choge wrote in a memo dated November 21.

“The organization will now revolve to a leaner structure with the group managing director as the lead for both subsidiaries”

The two gentlemen have since left the organization and join 117 others who have left the miller since last year when cost-cutting measures were switched on to restore the business to profitability.

Unga group admits  to feeling the heat of increased competition from other millers and raw material price inflation reducing their marginal sales growth.

“The competitive landscape has continued to intensify, with over 50 new millers joining the fray over the last two years alone,” Mr. Choge said in another report.

There are also cheap poultry imports from the region and fish from Asia, shrinking the company’s market share for nutritional animal products.

The two subsidiaries are owned by Unga Holdings which is 65% owned by Unga Investments Limited, a 100% shareholder of the Unga Group.

The company experienced losses in operating costs at Sh 502 million, a reverse from the operating profit of Sh 616.2 million the previous year.

Unga however saw its net profit grow to Sh311.3 million from Sh293.4 million, benefitting from a one-time gain of Sh802.5 million from the sale of its Ennsvalley bakery business.

Despite the hiccups in the business, Unga says it will continue to differentiate itself as a quality product supplier to maintain its premium brand.

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Jay Ndungu

Jay is a computer scientist and journalist with a passion for the intersection of technology and society. He has a background in computer science, developing a deep understanding of the technical aspects of the industry, including programming languages and software development methodologies. Currently, He writes for Nairobi Times, covering a wide range of topics including technology, politics, sports, and entertainment. With his unique combination of technical knowledge and journalistic experience, Jay brings a unique perspective to the stories he covers, able to explain complex technical concepts in an easy-to-understand manner. His work is dedicated to bridge the gap between technology and society, and to make people more aware of the potential of technology to make the world a better place.

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