For over 7 decades DT Dobie was a household name in Kenya’s automotive industry, a symbol of class and style, especially through its iconic Mercedes-Benz franchise. But after 76 years of operations, the company is now officially closing its doors, leaving behind a rich legacy in the Kenyan automotive market.

A Legacy in Kenya’s Automotive History

Founded in 1949 by Colonel David Theodore Dobie, a British Army veteran of World War II, DT Dobie first made its mark by getting the Mercedes-Benz franchise for East Africa. The company quickly grew to become a major player in the automotive sector, dealing not just in luxury passenger vehicles but also in heavy commercial trucks. Colonel Dobie’s love for cars came from his experiences during World War II when he served in Germany.

Over the years the company expanded its portfolio to include international automotive brands such as Nissan, Volkswagen, Renault and Hyundai including their trucks and buses. DT Dobie was the leading distributor for these big brands, offering customers top notch vehicles and services.

Challenges and the Fall

However despite its past successes DT Dobie faced significant challenges in recent years. In 2014 the company lost the Nissan and Renault franchise in Kenya to Imperial Group from South Africa. This was a big blow especially the loss of the Nissan franchise which had been with DT Dobie for 50 years.

This was largely as a result of CFAO Motors (DT Dobie’s parent company) being acquired by Toyota Motor Corporation and the subsequent restructuring of the company. The departure of these key franchises and the restructuring put DT Dobie on a tough spot.

Merger and Restructuring

In an effort to weather the storm DT Dobie merged its operations with CFAO Motors Kenya (formerly Toyota Kenya) on April 1, 2023. This merger created the largest automotive distributor and service provider in the country. But this was part of a broader restructuring plan to consolidate the two companies’ operations in a competitive market.By 2016 Toyota Tsusho Corporation (TTC) a major player in the Toyota Group had acquired 100% of CFAO shares. This acquisition led to an internal group reorganization where TTC would consolidate all its African operations including Toyota Kenya under the CFAO brand.

The End of DT Dobie

Despite the merger and the shift to a unified brand under CFAO in Africa, the end of DT Dobie as a separate entity was inevitable. As of June 3, 2023 the company went into liquidation under the Insolvency Act. Mark Gakuru the official receiver and liquidator announced that the official liquidation process would commence, with creditors required to submit claims by September 15, 2023.

This marks the end of DT Dobie’s long and storied history in Kenya’s automotive industry. The company’s exit also marks the end of an era for many Kenyan consumers who had come to associate DT Dobie with prestige and quality.

Minimum wage increases are a certainty as the government looks to keep up with the rising cost of living and ensure that employees are paid fairly and have enough to survive and thrive on. However, these increases can- and will- affect your business, especially if you are finding that you are already scraping your income threshold. Then, here is how the minimum wage increases will affect your business.

How can minimum wage increases affect businesses?

You might think that the new minimum wage will provide large benefits to your employees, and you might be incredibly happy for them.

However, there are a number of downsides for business owners.

If business owners are already struggling to make a profit, they may panic about where they are going to get the money they need to pay their team members. This could leave them without a proper income- and struggling to keep their businesses going.

Many businesses, including yours, may need to increase the costs of their products. This is especially the case since their rent may increase, along with supplier costs, as other companies and individuals feel the strain of these wage rises. In some cases, you might end up pricing your customers out if you are not too careful.

The minimum wage rises can also affect your business as you might not be paying your team as advantageous a wage as you were previously. This might mean that you need to increase your team’s wages, even if they were already earning above the minimum wage. This can be incredibly frustrating, but if you do not, you may find that your employees are dissatisfied and will look for better-paying jobs.

Whatever you do, it is essential that you are always aware of minimum wage laws and that you implement them as soon as possible. This will stop you from falling on the wrong side of the law.

How can you manage these impacts?

There are several ways to mitigate these impacts and get back on your feet. If you are struggling to get back on your feet even after trying these steps, you might consider speaking to the professionals at The HR Dept. Here, they will be able to guide you on your best course of action, ensure that you are paying your employees correctly and remain on the right side of the law, and inform you of any changes. Additionally, they will be able to help you manage your employee costs and boost your team morale. This will enable your company to continue growing from strength to strength, even in the face of rising challenges.

One of the main and most distressing ways to cope with the extra strain on your finances is by letting staff members go. You might streamline this process by ensuring that roles are still covered by merging certain responsibilities into a single position. This can mean that the same tasks are still carried out at a reduced cost.

However, this can be incredibly difficult for your team members, leading to resentment and a decline in morale. If you are going to implement this, it is essential that you comply with the proper redundancy laws and that you are transparent with your staff about the lack of funding that is necessitating this action.

In some cases, you may also need to stop recruitment drives. This will mean that you are not taking on more staff who will need to be paid, and it will also mean that you are not devoting as much time and energy to sourcing staff that you can no longer afford. Instead, you might consider training up the staff that you already have.

You might also spend some time looking at your staff rotas. You might consider reducing the number of hours people work, especially if they are on zero-hour contracts, and try to create schedules that ensure staff are only in the office when necessary.

You could also try and cut costs in some areas of your business. This is relatively easy to do for most businesses. You can look for new suppliers, find new utility providers, and consider limiting the amount of electricity and gas that you are using. It is possible to do this by allowing your team to work remotely. You may also consider automating some of your processes to eliminate the need for human oversight. This will enable you to allocate your funds to the most critical aspects of your company.