Rift Valley Billionaire Buzeki Shuts Down Company Over High Fuel Prices

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

Complaining about the harsh business environment brought about by the high cost of fuel, the billionaire who runs the Buzeki Group of Companies remarked the shutdown had rendered hundreds jobless. 

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

“We parked trucks from November 1, 2023, as the increase in fuel prices rendered the business unprofitable,” he explained how President William Ruto’s policies had hurt the private sector.

Businessman Buzeki Bundotich, chairman of Buzeki Group of Companies, during a previous interview in 2019.


Buzeki Bundotich

“We sent 300 staff parking. We still have some employed. Things are tough and this is the truth.”

In June 2023, Buzeki threatened to downscale his truck business after Members of Parliament approved raising of Value Added Tax (VAT) on fuel to 16 per cent from 8 per cent.

At the time, he stated that he would send some of the old trucks to the scrapyard. 

He added that apart from getting rid of old trucks, he would let financing institutions repossess other trucks which the company had acquired through loans. 

“Due to the rise in VAT, we are now officially downsizing with immediate effect. All old trucks, including those with Euro 3 and below, will be sent to the scrap yard,” he stated then. 

With the situation not improving, the billionaire escalated the downsizing leaving the logistics company a shell of its former self. 

The Buzeki Group of Companies was founded in 1999 and before its collapse, was one of the leading transport service providers in East and Central African regions. 

The company offered transport services to various industries in the manufacturing, distribution, and agricultural sectors. 

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

A tanker belonging to the Buzeki Group of Companies.


Buzeki Enterprises Limited

Source link