By MUNA WAHOME 

Kimbo cooking fat will no longer be produced by Unilever Kenya. 

In a historic announcement yesterday, the British subsidiary confirmed that it had sold the right to produce the brand to the Thika-based Bidco Oil Refineries. 

With this move, job cuts are expected at the company in Industrial Area, Nairobi. 

"It will lead to some job losses across the business over the next few months," a statement released by company's Public Relations Manager, Mr George Wainaina, said of the restructuring process being effected.

However, he said the company would do everything to minimise the impact on the laid-off workers. Bidco can easily produce the brand in its plant without necessarily absorbing many of the laid-off workers.

Kimbo stands for Kenya Industrial Manufacturing Board, the predecessor of East African Industries. 

It was formed by colonial administration to address the shortage of consumer goods in 1943 just before the end of the Second World War. Unilever partnered with the East African Industries in 1953 and took over the remaining shares in 1999. 

Bidco and Kapa Oil Refineries, have offered the one-time monopoly steady competition in the production of cooking oils and fats.

Kimbo and the firm's other consumer brands are some of its household names which have been losing ground to smaller, efficient producers. For instance, its once-famous Tree Top fruit juice disappeared from the shelves to be replaced by artificial flavours. 

Notably, minor competitors have at times come up with innovative packaging and marketing strategies leaving the giant to follow suit. Kimbo started using plastic packaging well after competitors had popularised it in the domestic market.

At the same time, the Unilever market niche, like for all major manufacturers, has heavily been affected by counterfeit goods.

Amongst the other brands which the multinational is giving up include Veebol, Tiger and the once-dominant cooking fat brand, Cowboy.

"Unilever Kenya will therefore shortly cease all manufacture, marketing, sales and distribution of these brands," said the company. 

In 1999, the UK-based transnational announced a radical review of its global business, dubbed "path to growth" strategy. The statement said the local branch had to align its objectives with the parent company's ambitious global strategy. 

However, Unilever Kenya says it is still committed to investing in Kenya. The scrapping of the production lines though echoes similar and growing actions by several transnational subsidiaries in recent years, which have resulted in job losses. 

They largely blame high cost of production, unfair competition from counterfeits and declining economy.