This archive report was first published on 26 September 2019.
Sanlam Kenya, a non-bank financial services firm, has approved a Voluntary Early Retirement (VER) scheme as part of its organisational turnaround strategies. The VER will provide an opportunity for permanent and pensionable staff members to apply, with employees aged over 50 years eligible to participate.
According to Sanlam Kenya Group CEO, Dr Patrick Tumbo, the VER offer will be open until October 4, with employees who accept the offer set to be released from the company's employment effective October 31. The firm's cost trajectory has been growing over the last 4 years, from Sh1.4 billion in 2015 to the current Sh2 Billion in 2018, representing an 8 per cent compounded annual growth rate.
Alongside the VER, management actions on business turnaround are expected to provide more than Sh200million savings, including cost containment and aggressively growing revenue moving forward in the short and medium-term. Staff costs at Sanlam Kenya stood at Sh943 million in 2018, up from Sh746 million incurred the previous year, representing a 26 per cent growth.
Under the VER terms, the firm is offering a severance pay equivalent to one (1) month's salary for every 3 years of service. The firm will also offer to the successful applicants' compensation for unused leave days and a 30 per cent loan rebate on the balance of any outstanding in-house staff loans.
Sanlam Kenya recently bounced back to profitability in its half-year trading results, confirming the viability of its turnaround strategy. The Nairobi Securities Exchange (NSE) listed firm posted a Sh639.7 million after-tax profit for the six-month period ending June 2019, a complete turnaround from last year's Sh1.5 billion after-tax loss.
Published on September 26, 2019
