Rift Valley Billionaire Buzeki Shuts Down Firm Over Excessive Gas Costs

Businessman Buzeki Bundotich on Saturday, January 13, revealed that his logistics firm had shut down the vast majority of its enterprise operations. 

Complaining in regards to the harsh enterprise setting led to by the excessive price of gas, the billionaire who runs the Buzeki Group of Firms remarked the shutdown had rendered a whole lot jobless. 

Buzeki who has twice unsuccessfully vied for the Uasin Gishu gubernatorial seat remarked that the corporate was now a shell of its former self overseen by a couple of staff. 

“We parked vehicles from November 1, 2023, as the rise in gas costs rendered the enterprise unprofitable,” he defined how President William Ruto’s insurance policies had damage the non-public sector.

“We despatched 300 workers parking. We nonetheless have some employed. Issues are powerful and that is the reality.”

In June 2023, Buzeki threatened to downscale his truck enterprise after Members of Parliament accepted elevating of Worth Added Tax (VAT) on gas to 16 per cent from 8 per cent.

On the time, he acknowledged that he would ship a number of the previous vehicles to the scrapyard. 

He added that aside from eliminating previous vehicles, he would let financing establishments repossess different vehicles which the corporate had acquired by way of loans. 

“As a result of rise in VAT, we are actually formally downsizing with instant impact. All previous vehicles, together with these with Euro 3 and under, shall be despatched to the scrap yard,” he acknowledged then. 

With the state of affairs not enhancing, the billionaire escalated the downsizing leaving the logistics firm a shell of its former self. 

The Buzeki Group of Firms was based in 1999 and earlier than its collapse, was one of many main transport service suppliers in East and Central African areas. 

The corporate provided transport companies to numerous industries within the manufacturing, distribution, and agricultural sectors. 

Its fleet of vehicles consisted of flatbeds/skeletals, tippers, and tankers.