Sanlam Kenya to cut operating costs in early retirement scheme

Insurance firm, Sanlam Kenya has announced a voluntary early retirement program for staff members aged 50 and above.

The program is, however, not limited to staff of 50 and above, the firm says anyone willing to apply can do so and submit the request by October 4.

Chief Executive Officer (CEO) Patrick Tumbo said on Thursday the management has discretion to decide who leaves based on skills they require.

The plan will be fully executed by end of October.

The company seeks to cut operating costs by more than Sh 200 million and has opted for staff layoff, helped by enhanced efficiency through automation of some of the functions.

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“The VER scheme is one of the strategies we are deploying as part of our efforts to trim our total operating costs while gearing the company for enhanced operational efficiencies and agility,” Dr Tumbo said.

While revenue have been flat in four years, Dr Tumbo said, expenses  have grown by a compounded eight percent from Sh 1.4 billion in 2015 to Sh 2 billion last year.

Staff costs in 2018 grew 26.4 percent to Sh 943 million compared with a year earlier, accounting for 47.15 percent of operating expenses.

Sanlam has 193 staff comprising nine at the group level, 110 in life business and 74 in general business, with an average age of 35.

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