This archive report was first published on 26 September 2019.
Sanlam Kenya Plc, a South African majority-owned firm, has joined a growing list of companies opting for job cuts to stay afloat. The company, listed on the Nairobi Securities Exchange, has announced plans to lay off tens of its staff as part of a cost-cutting strategy aimed at trimming operating costs by more than Sh200 million.
The voluntary early retirement (VER) programme, which only affects Sanlam's insurance business, primarily targets workers aged 50 and above but is open to younger staff. The company has offered to pay a month's salary for every three years of service, write off a third of outstanding in-house loans, and retain the affected staff on medical cover for the remainder of the year.
Chief executive Patrick Tumbo said the company could not have afforded a restructuring programme last year when it plunged into a Sh1.5 billion net loss largely due to bad past investment decisions. He added that the management has discretion on who leaves based on skills the company wants to retain.
Sanlam has 193 staff comprising nine at the group level, 110 in life business, and 74 in general business. The company has given interested employees up to October 4 to apply for the scheme, which will be effected at the end of that month.
