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179 jobless as tobacco firm shuts facility

Over 170 people have lost their jobs following the closure of the Kanengo Tobacco Processors Limited’s processing facility at in Lilongwe.

According to a statement signed by the company’s board of directors the decision to close the facility has been arrived at due to financial challenges the firm is facing.

The board has disclosed that at least 179 permanent workers have since been laid off.

The development, is also coming at a time thousands in the country have lost their jobs due to Covid-19 induced economic challenges faced by various players in different sectors.

The company started its operations in September 2009 with the opening of a state of the art processing facility, which at its peak processed 32 million kilograms of tobacco.

The company attributes the financial challenges to the reduction in national crop size and international demand for Malawi air-cured burley tobacco.

It adds that there is high competition of tobacco processing in Malawi due to high installed capacity and certain international sanctions on Malawian tobacco.

All retrenched workers are being assured of receiving a fair compensation, in accordance with the country’s laws governing employment

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