This archive report was first published on 26 September 2019.
Sanlam Kenya has unveiled a voluntary early retirement plan aimed at reducing its workforce and cutting operating costs. The plan, which targets staff aged 50 and above in its insurance business, is part of the company's efforts to trim its total operating costs and enhance operational efficiencies.
According to Sanlam Kenya CEO Patrick Tumbo, the management has discretion to decide who leaves based on the skills they require. The plan will be fully executed by the end of October.
Sanlam Kenya has opted for staff layoff as a starting point in its bid to cut its operating costs by more than Sh200 million. The company aims to achieve this through enhanced efficiency, facilitated by the automation of some of its functions.
Dr. Tumbo noted that while revenue has been flat over the past four years, expenses have grown by a compounded eight percent from Sh1.4 billion in 2015 to Sh2 billion last year. Staff costs in 2018 grew 26.4 percent to Sh943 million, accounting for 47.15 percent of operating expenses.
Sanlam Kenya has a total of 193 staff, comprising nine at the group level, 110 in life business, and 74 in general business, with an average age of 35.
Employees have been given a week until October 4 to apply for the scheme, which is also open to staff below 50 years.
