- July 29 2024
Bamburi’s largest shareholder approves $182.8 million sale to Amsons Group
Holcim, a Swiss construction materials manufacturer and the largest shareholder in Kenya’s biggest cement maker Bamburi has approved a $182.8 million buyout offer from Amsons Group. Holcim will sell its 58.6% stake in the Bamburi to Tanzanian energy group Amsons Group. With Holcim’s approval, the deal will also need the approval of the minority shareholders and the regulators including the Competition Authority of Kenya (CAK) and the Capital Markets Authority (CMA). Amsons offered shareholders $0.52 (KES65) per share, a 44.4% premium on Bamburi’s closing price on July 10, when the deal was made public. Bamburi’s share price has since rallied to KES61 ($0.47). Bamburi is the largest cement maker in Kenya, with about 30% market share. “KCB Investment Bank Ltd, being the transaction advisor and sponsoring stockbroker of Amsons has confirmed that Amsons has sufficient financial resources at its disposal to satisfy the consideration payable for all shares in Bamburi pursuant to a full acceptance of the offer,” Bamburi said. The transaction could see Bamburi delist from the Nairobi Securities Exchange (NSE). However, Amsons must receive the backing of at least 75% of the offered shares before seeking CMA approval to delist from the Nairobi bourse. Should Amsons acquire 90% of the offer share, the company will “offer the remaining shareholders a consideration equal to the prevailing market price of the voting shares or the price offered to the other shareholders”, per Kenya’s takeover regulations. The acquisition will mark the Tanzanian firm’s formal entry into the Kenyan market, with plans to expand into other sectors, the company said on July 10. The family-owned conglomerate, founded in 2006, has interests in oil and gas, real estate, wheat flour, and cement in Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo (DRC). Its annual turnover is over $1 billion.
Read More- July 29 2024
Mass disconnection of MTN SIM cards linked to incomplete or mismatched NIN registration
On Sunday, MTN Nigeria, the country’s largest telco, barred the lines of thousands of subscribers yet to link their National Identification Number (NIN) three days before a July 31, 2024 deadline set by the Nigerian Communications Commission (NCC). MTN began blocking non-compliant SIMs in December 2023, said two people with knowledge of the matter. However, several MTN users claimed that their SIMs were blocked on Sunday despite linking their NINs. “I submitted my NIN twice, but my SIM was blocked without prior notice. I have been using this number for over ten years. Where do I start from?” one person told TechCabal. One person with direct knowledge of the situation said possible reasons could include incomplete NIN registration or a mismatch with SIM registration details. “The name on the SIM registration is different from the one on the NIN. So I need to go and update it,” one MTN customer said, confirming that the telco sent multiple notifications before blocking her number. A spokesperson for MTN did not immediately respond to a request for comments. The disconnection comes as Nigerian regulators pressure telcos to implement the NIN-linkage policy introduced in December 2020. In February 2024, the Nigerian Communications Commission (NCC) told telcos to bar subscribers who failed to link their phone numbers to their NIN on or before February 28, 2024. The deadline was extended to April 15, 2024, and later July 31, 2024. Gbenga Adebayo, President of the Association of Licensed Telecoms Operators of Nigeria (ALTON), responded to insinuations that the SIM bans were linked to the call for protest, saying the telcos were not deliberately barring lines. “If there is anything, it is the mismatch in NIN- SIM registration and customers who have received messages from operators to come and register and link their SIMs. It is just coincidental it is coming at this point,” he said. In March 2024, MTN Nigeria CEO Karl Toriola said the company barred 8.6 million subscribers in compliance with the NCC directive. Many of these lines were reactivated leading to a reduction of 2 million in total subscribers for Q1 2024. “We have 8.9 million subscribers going through the verification process, and these subscribers fall within the cohort of less than five SIMs linked to an unverified NIN,” Toriola said.
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- July 29 2024
TechCabal Daily – AI’s promise in Africa
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Last week, we launched a new column, Myth Busters, to investigate the infamous tech lores that often burn across social media. In the first edition, Ganiu tells us if Nigeria’s apex bank is really trying to loot all the monies in the 19 million dormant bank accounts across the country with a rehashed guideline. Find the answer here. In today’s edition Nigerians face barred SIMs as registration deadline approaches How the CBN’s wonky 2022 policy created a big win for POS agents Ethiopia floats its currency AI’s promise in Africa The World Wide Web3 Events Cybersecurity Nigerians face barred SIMs as registration deadline approaches In December 2021, the Nigerian government set a tight goal: it would enrol 100 million Nigerians on its national identification programme by 2025. At the time, only 70 million Nigerians—less than 50% of the country’s population—were enrolled in the programme which supposedly kicked off in 2015. Two years later, in December 2023, the number of enrollees hit 104.16 million, a small growth considering the identity management agency had plans to register at least 2.5 million enrollees per month. One incentive, announced in February 2020, that has pushed registrations so far is linking NINs to SIM cards. The government’s rationale is that by connecting SIM cards to the national identity database, it becomes easier to identify individuals using these phone numbers. Moreover, if the Nigerians using the 224 million or so SIM cards active in the country needed NINs to operate these cards, registrations would be driven up. Since postponing the initial December 2020 deadline for registration, the finish line for the NIN-SIM linkage has been pushed back at least ten times to give the country’s 200 million-plus citizens enough time. This, inadvertently, led to a sense of complacency among many Nigerians. With the latest deadline set for July 31, 2024, several MTN users in Nigeria woke up to barred lines on Sunday, three days early. Some, like this user, claim to have completed the NIN-SIM linkages. At the expiration of the last deadline, over 40 million SIMs were barred across the major telcos in the country. While MTN has yet to make a statement, it informed users of steps to take to reactivate their barred lines via its X page. Read Moniepoint’s 2024 Informal Economy Report Did you know that only 2.8% of informal businesses are started out of passion? Click here to find out the motivation of businesses in Nigeria’s informal economy. Banking How the Central Bank’s wonky 2022 policy created a big win for POS agents “The law of unintended consequences, often cited but rarely defined, is that actions of people—and especially of government—always have effects that are unanticipated or unintended.” When Nigeria’s former Central Bank chief Godwin Emefiele announced a hasty plan in October 2022 to phase out the country’s ₦200, ₦500, and ₦1,000 notes in six short months, one justification was the “significant hoarding of banknotes by members of the public.” “Statistics show that over 85%of currency in circulation are outside the vaults of commercial banks,” Emefiele said at the time. No one was sure why that was a bad thing, but it sounds pretty serious when you attach 85% to anything. Yet, two years and one cash crunch later, the unintended consequence of Emefiele’s abrupt currency change—a court ruling extended the timeline to one year—is that more Nigerian businesses bypass commercial banks for banking agents, a.k.a POS agents for money deposits. It’s creating a second cash at Nigeria’s commercial banks. The banks are responding by setting daily withdrawal caps for customers. Here’s Muktar Oladunmade from his Saturday article: “We cannot give out more than ₦100,000 for each customer. Sometimes we open with only ₦600,000 or ₦1,000,000, and we have to make sure people get cash when they come to the banks, so we ration it,” a banker told TechCabal. “The central bank delivered cash to their Ojodu branch only twice last week,” that person added. Muktar’s argument goes something like this: the POS agents got creative during the 2023 cash crunch, but some of the ways they got access to cash remain relevant now. What business wants to go to the bank and face possibly long queues if they can make their deposits at the POS agent two doors down for free? Read Muktar’s article here. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Economy Ethiopia floats its currency Last week, Ethiopia signed a local currency swap worth $817 million with the UAE as it seeks to pay off its debts. In 2023, the country defaulted on the interest payment—$33 million—on a $1 billion Eurobond that matures later this year. The country is also currently negotiating a $10.5 billion aid package with the International Monetary Fund (IMF) to boost its ailing economy. Ethiopia will now float its currency, the Birr, as it seeks to remedy its economy. The move is part of a broader macro-economic reform whose objective is to “correct foreign exchange distortions and solve the structural balance of payments deficit problems.” Sidebar: Countries float their currencies to let their currencies find their true value which is determined by supply and demand in the foreign exchange market. A floating currency can help absorb shocks to the economy. For example, if a country like Ethiopia experiences economic downturns or changes in demand for its exports, the currency can depreciate, making exports cheaper and imports more expensive, thus helping to restore balance. Ethiopia’s previous exchange system caused a dollar shortage which was needed for imports and repatriation of profits for foreign investors. Ethiopia follows in the footsteps of Nigeria which floated the naira when President Tinubu assumed office. The naira has lost
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- July 27 2024
Kenya’s ride-hailing drivers caught in the crossfire of cheap rides and rising costs
When ride-hailing apps like Uber and Bolt launched in Kenya in 2015, they promised riders a new experience and better earnings for drivers. Nine years later, the companies have delivered cheap rides for passengers, but driver partners have seen their incomes decline. On July 16, taxi operators went on strike for the fourth time since 2020 to protest low pay and unfair working conditions. The drivers say the fares do not reflect the country’s economic realities. “A 25km trip is about KES1,000 ($7.52). When you deduct the 18% commission paid to the company and other charges, you’re left with very little even to service the car,” said Steve Mutisya, a 35-year-old driver. “My car consumes one litre per 20km. If you do the math, you will see how little money I make at the end of the month, yet I have a young family.” For a KES1,000 ($7.52) 25km trip, Mutisya would remain with about KES 569 ($4.33) after deducting KES222 ($1.69) for 1.25 litres, KES180 ($1.37) as 18% service fee paid to the companies and KES28.8 ($0.22), a 16% VAT on the service fee. Uber and Bolt reviewed trip prices in 2022 after the Ministry of Transport capped the commission paid to the companies at 18%. That won over the drivers for some time. However, the cost of fuel and vehicle parts has increased, pushing operators to the edge. Ride-hailing apps worry that customers are price-sensitive and that increasing fares would reduce patronage. The downside is that someone in the value chain has to take it in the neck for such a precarious business model. Uber and Bolt did not immediately respond to email requests for comments. Since the 2022 price review, petrol prices have increased by up to KES50 ($0.37) a litre. Vehicle maintenance has spiralled up following an import duty increase on spare parts from 25% to 35% in addition to a 20% excise tax. “In 2022, brake pads would cost me KES1,200 ($9) and a good service between KES6,000 ($45) to KES10,000 ($75). Today, brake pads alone go for KES6,000,” Mutisya said. The high maintenance cost has forced insurance companies to stop covering some popular car models among taxi operators including Suzuki Alto, Honda Fit and Mazda Demio. Some insurance firms have stopped covering some popular car models among taxi operators like Suzuki Alto. Image | The Star Taxi drivers who took loans to buy cars have been left with unaffordable debt they cannot service. Kenya’s transport industry accounts for KES45.6 billion ($3.3 billion) of the banking sector’s KES651.8 billion (KES4.9 billion) non-performing loans, according to the Central Bank of Kenya (CBK). “I took a KES120,000 ($902) loan to top up my savings for this car. I had to ask for help from family to clear the debt because the money I was getting could not,” said John Munyao, a Bolt driver in Nairobi. “I know of colleagues who took loans to grow their fleet and are now struggling to repay.” The Ridehail Trasport Association, one of the sector representatives, wants the companies to include drivers in setting minimum and base fares. “The person who sets the prices doesn’t bear the cost of running the business,” Zakaria Mwangi, secretary general of the association, told TechCabal on July 15. “Ultimately, the taxi apps determine the cost of each trip, not the driver.” Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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- July 27 2024
Hate them or love them, the agents are here to stay
Every morning, Raheem, a banking agent, a.k.a POS agent at Mile 12, one of Nigeria’s largest markets, must get cash for his two stalls. He can withdraw some money over the counter, but since early 2024, most commercial banks have capped daily withdrawals at ₦100,000. He can’t rely on customer deposits because those are inconsistent, and getting money from other agents is expensive. “The banks do not give out more than ₦100,000 cash now if you have a savings account, so we meet supermarkets, wholesalers, and filling stations for cash. It is a mutual agreement; they need to lodge cash, and we need cash for our business, so I don’t charge them,” a POS agent in Ketu, Lagos, told TechCabal. No, the CBN isn’t after the money in your dormant account Banking agents began buying cash from these businesses in February 2023, when the Central Bank’s hasty currency change created a massive cash squeeze. They paid ₦5,000 for every ₦100,000 to fuel stations and other cash-heavy businesses and transferred the cost to customers who were paying between ₦500 and ₦700 for a ₦5,000 withdrawal. A court ruling in March 2023 compelled the CBN to modify timelines for the currency change, solving the cash crisis. While that stopped agents from buying cash, they still source money from these businesses in exchange for waiving deposits. It’s a win-win situation that works but creates an unintended consequence: a cash shortage at commercial banks. A central bank policy capping weekly over-the-counter withdrawals at ₦500,000 also contributes to the cash shortage. The regulator has tried to wean Nigerians off their cash dependence and has cut cash disbursements to bank branches. The resulting cash scarcity at the banks drives businesses to the agents, who rarely run out of cash. Bank branches, which rely on cash deposits from the central bank and customers, have had to cap over-the-counter withdrawals as cash-heavy businesses take their deposits to agents instead of banking halls, further driving Nigerians to POS agents. “Even though the central bank has a ₦500,000 limit, we cannot give out more than ₦100,000 for each customer. Sometimes we open with only ₦600,000 or ₦1,000,000, and we have to make sure people get cash when they come to the banks, so we ration it,” a banker told TechCabal. They added that the central bank delivered cash to their Ojodu branch only twice the previous week. With withdrawal limits at bank branches and ATMs, customers now visit bank branches for customer care issues, as foot traffic at branches has “dipped,” a banker at Wema Bank told TechCabal. “We have reduced the stress of going to the banks,” said Raheem. There are 120 POS terminals for every ATM in Nigeria, as there are less than 23,000 ATMs in the country and 2.7 million active POS terminals. When he secures cash for his stalls, Raheem, like most agents, provides Cash-In Cash-Out services for many traders, charging ₦100 on withdrawals under ₦5,000 with fees of up to ₦5,000 depending on the transaction size. Agents say they include the cost of rent, local government taxes, data, transport and the risk of holding cash in those fees. Daily profits vary and can be as low as ₦1,000. At least five agents in Mile 12 told TechCabal they earn enough to sustain their families daily. Some agents can make as much as ₦25,000 daily, more than a third of Nigeria’s newly approved monthly minimum wage. Nigeria has approximately 1.5 million banking agents; low entry barriers and subsidised POS terminals help drive agency banking’s popularity. Their ubiquity has also helped drive the growth of digital payments in Nigeria, as the value of cash transactions dropped by 36% from 2019 to 2023. A profitable union: How banking agents helped OPay and Moniepoint distribute 17 million cards OPay and Moniepoint issue 17 million Verve cards as Nigerian fintechs switch from Visa and Mastercard
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- July 27 2024
Kwasu Post UTME 2024 application process and requirements
Kwara State University (KWASU), Malete, invites all UTME and Direct Entry candidates to participate in the Kwasu Post UTME 2024 for the 2024/2025 academic session. Eligible candidates for the Kwasu Post UTME 2024 Candidates who selected Kwara State University as their first choice in the 2024 UTME. Candidates willing to choose KWASU as their first choice should change their institution to KWASU on the JAMB portal before the screening. Eligibility criteria includeG Minimum of five (5) O’level credits in relevant subjects obtained in no more than two sittings, except for MBBS which requires one sitting. Candidates awaiting O’level results may apply but must submit their results before the admission exercise concludes. Registration and screening fees All applicants must pay a non-refundable fee of Two Thousand Naira (N2,000) only. Steps for registration and screening To participate in the Kwasu Post UTME 2024, follow these steps: 1. Visit KWASU admission Portal and select “Click here to apply”. Then click on the drop-down menu (three bottom icon on the top right). 2. Click the “Undergraduate” link on the top menu. 3. Enter your JAMB Registration Number and click “Continue”. 4. Complete the basic information page. Ensure to provide a valid personal phone number and email address, then click “Next”. 5. On the payment review page, click “Make Payment” to proceed to the payment page. 6. Provide your ATM card (MasterCard or Visa) details and submit. 7. Enter the OTP code sent to your phone and click “Continue” to complete your payment. 8. After successful payment, return to the portal, enter your JAMB registration number and Surname as the password. 9. Click “Login to dashboard” and complete your registration. 10. Print the completed registration form and payment receipt. Payment Issues In case of payment issues: Re-query your payment attempts if debited but payment failed due to network issues. Enter your JAMB registration number and phone number, then use the re-query interface to resolve unsuccessful payment attempts. Deadline and other final vital information on the Kwasu Post UTME 2024 Please note that the deadline for registration for the Kwasu Post UTME 2024 : Sunday, August 25th, 2024. Final admission depends on meeting the minimum scores required by KWASU and the availability of spaces within the NUC approved admission quota. Falsification of documents or citizenship certificates will lead to disqualification and prosecution. For further enquiries, updates, and additional instructions, visit [KWASU Website](http://www.kwasu.edu.ng) or contact: – Email: admission.officer@kwasu.edu.ng – Phone: 08136965076, 09067939787, 08155498780 (available for WhatsApp and text messages)
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- July 26 2024
Nigerian schools conducting only online screening in 2024
Several Nigerian schools have adopted online screening methods for their admissions in recent years and 2024 may not be any different for them. admissions. This process enables prospective students to undergo screening without physically attending the institution. Below is a comprehensive list of major Nigerian universities, polytechnics and the likes that offer only online screening processes. Nigerian schools conducting online screening 2024 1. Ambrose Alli University (AAU) 2. Edo State University (EDSU) 3. Osun State University (UNIOSUN) 4. Federal Polytechnic, Ado-Ekiti (FPA) 5. Ladoke Akintola University orlf Technology (LAUTECH) 6. Federal University of Technology, Owerri (FUTO) 7. Yaba College of Technology (YABATECH) 8. Moshood Abiola Polytechnic (MAPOLY) 9. Federal Polytechnic, Ilaro (FPI) 10. Lagos State University (LASU) 11. Lagos State University of Science and Technology (LASUSTECH) 12. Lagos State University of Education (LASUED) 13. Nnamdi Azikiwe University (UNIZIK) 14. Chukwuemeka Odumegwu Ojukwu University (COOU) 15. Ekiti State University (EKSU) 16. Kwara State University (KWASU)* 17. Adekunle Ajasin University (AAUA) 18. Federal University of Petroleum Resources (FUPRE) 19. University of Jos (UNIJOS) 20. Federal University, Lafia (FULAFIA) 21. Tai Solarin University of Education (TASUED) 22. Gombe State University (GSU) 23. Bayero University Kano (BUK) . 24. University of Abuja (UNIABUJA) 25. Federal University, Dutse (FUD) 26. Federal University, Oye-Ekiti (FUOYE) 27. Abubakar Tafawa Balewa University (ATBU) 28. Federal University of Technology, Minna (FUTMINNA) 29. Ahmadu Bello University, Zaria (ABU ZARIA) 30. Ondo State University of Science and Technology (OSUSTECH) 31. Ebonyi State University (EBSU) 32. Cross River University of Technology (CRUTECH) 33. Modibbo Adama University of Technology (MAUTECH). 34. Federal University, Kashere (FUKASHERE) 35. Taraba State University (TASU). 36. Yobe State University (YSU) 37. Nasarawa State University (NSUK) 38. Usmanu Danfodiyo University Sokoto (UDUSOK) 39. Michael Okpara University of Agriculture, Umudike (MOUAU) 40. Federal University, Gashua (FUGASHUA) 41. Federal University of Agriculture, Abeokuta (FUNAAB) 42. Umaru Musa Yar’adua University (UMYU) 43. Kaduna State University (KASU) 44. Akwa Ibom State University (AKSU) 45. Unicross (Formerly Cross River University of Technology) Final thoughts The adoption of online admission system means these universities will likely use a combination of points derived from O’level in addition to the points calculated from UTME scores conversion. Schools who conduct Post UTME are likely not to use such system, instead they primarily use their Post UTME exams as determinants for admission. Nevertheless, the online system means all candidates have equal opportunity to participate regardless of geographical barriers. Also, it minimises expenses associated with travelling and accommodation for physical screenings, such that candidates only need to visit the institution when they can confirm their admission.
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- July 26 2024
New steps to apply for the 2024 UI Post UTME
As we reported recently, The University of Ibadan (UI) has officially announced the commencement of the Post UTME and Direct Entry screening for the 2024/2025 academic session. Prospective candidates aiming to secure admission into UI should follow the steps outlined below to successfully apply for the screening. 1. Eligibility criteria for 2024 UI Post UTME Before beginning the application process, ensure you meet the eligibility requirements: Candidates must have chosen the University of Ibadan as their first choice in the 2024 Unified Tertiary Matriculation Examination (UTME) and scored at least 200 in the examinations. For Direct Entry, candidates should have a minimum of five O’level credit passes in relevant subjects and must have applied through JAMB. 2. Create an account Visit the University of Ibadan admission portal. The portal will be open from Monday, 29th July 2024 at 12 pm to Saturday, 31st August 2024. Create a new account by providing a valid email address and creating a password. Make sure to use an active email address as further communication will be sent there. 3. Login and complete registration Log in to your account using the credentials created. Complete the registration form by providing personal details, academic qualifications, and uploading required documents such as O’level results and JAMB result slips. 4. Payment of screening fee Proceed to pay the non-refundable screening fee of 2000 and the portal access fee of 3000. The payment can be made online through the portal using a debit card and bank transfer. Ensure to print out the payment receipt as proof of transaction. 5. Upload documents After successful payment, upload scanned copies of your documents, including: UTME result slip O’level result – Birth certificate Local Government Area Certificate Ensure that the documents are clear and legible to avoid disqualification. 6. Print acknowledgement slip Once the documents are uploaded, print the acknowledgment slip. This slip will serve as proof of your successful registration and should be kept safely as it will be required during the screening process. 7. Prepare for the exam The Post UTME Centre Based Test will commence on Monday, 16th September 2024. Candidates are advised to prepare adequately for the examination. Familiarize yourself with the test format and practice past questions. Final thoughts Regularly check the admission portal and your email for updates on your specific screening date and venue. Ensure to arrive at the venue early on the day of the exam with all required documents and identification. That’s it about the application process for the University of Ibadan’s 2024 Post UTME and Direct Entry screening.
Read More- July 26 2024
No, the CBN isn’t after the money in your dormant account
Mythbusters: is Nigeria’s Central Bank trying to “steal” the money in your dormant account? When Nigeria’s Central Bank directed banks and other financial institutions on Friday to transfer ownership of dormant accounts and unclaimed balances, the immediate reaction from the public was distrust. On social media, a few prominent handles advised their followers to go to their banks and collect all the money in their dormant accounts before the CBN accessed it. “They want to take all the money. Go and reactivate your accounts now,” one X user wrote. The myth: The government desperately needs money to fund a massive deficit budget and wants the money in your dormant account. After all, it just slapped a windfall tax on banks’ FX gains. It’s a fabulous story, but it’s not true. The facts: The CBN’s recent directive is based on an October 2015 guideline “to curb abuses in the operation of dormant and inactive accounts and set operational standards.” A revised version of the guidelines released this week seeks to identify dormant accounts and unclaimed balances, hold the funds in the Unclaimed Balances Trust Fund (UBTF) Pool Account, and ultimately standardise the process. This policy does three critical things. First, the CBN safeguards the unclaimed funds in the dedicated pool account and maintains records of the beneficiaries. Banks are expected to publish dormant account lists six months before being transferred to the CBN. Second, the CBN can invest the funds in treasury bills and other securities to mop up liquidity. Third, it will reduce the fraud risks associated with dormant accounts. Here’s how to think about it: the CBN manages everything around unclaimed balances, from maintaining records, investing the funds, and, most importantly, establishing standard procedures for reclaiming the funds. Of course, the CBN isn’t doing these out of the goodness of their heart. The goal is to put idle funds to work and channel the profits into strategic public investments like infrastructure and welfare projects. A transparent process for managing unclaimed funds is a win for banks and the CBN. While it will reduce the size of banks’ balance sheets, the CBN takes some burden off the banks. Customers also get refunded the principal and interest–if any–on the invested funds upon request. This is why the policy makes good sense for everyone.
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- July 26 2024
Exclusive: Wasoko ex-employees discontinue wrongful termination suit
Nine ex-Wasoko employees will no longer pursue a wrongful termination lawsuit against the e-commerce company, one month after a Kenyan court overturned an existing order that ordered Wasoko to keep them on payroll. On June 11, the Employment and Labour Relations court gave the employees 21 days to prepare for a pre-trial hearing, but they failed to meet that deadline. The case will now be dismissed. The ex-employees will not file a fresh suit, citing financial and time concerns. “Most of us do not have jobs, so the cost is a hindrance,” one of the ex-employees told TechCabal. “Legal costs and the likelihood of a loss means we may end up paying Wasoko. The average period for a full suit is three years and more.” Had the case proceeded and the petitioners won, Wasoko could have been obligated to pay the employees the same exit packages. The petitioners argued it wasn’t fair that employees who worked for Wasoko for a longer time received more money than those who had left “stable” jobs to join the company. “We can confirm that we adhered to the judicial process, allowing it to take its course. As of June 11th, the court ruled in our favour and vacated all interim orders that had been issued against the company,” Wasoko told TechCabal. Another ex-employee claimed the court ignored most of their submissions. In their prayers submitted to Judge Nzioka wa Makau in January 2024, the employees argued that the matter was urgent as they faced irreparable harm if the court did not hear their case promptly. They also requested the court to compel Wasoko to address their complaints before replacing their roles. “The judge ignored most of our submissions and relied on one affidavit signed in duress by one of us who wanted to exit the suit,” one petitioner told TechCabal. “The main suit was to be with the same judge, so it was difficult to prosecute the matter well. This would involve costs if we lost.” The employees filed the lawsuit in January after Wasoko announced plans to merge its operations with Egypt’s MaxAB. Initially projected to conclude in April, the merger is still ongoing. The companies plan to rebrand the combined business, but neither party has confirmed a completion date. Wasoko told TechCabal that it cannot share specific details on the date “due to the sensitive nature of the merger.” Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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