Sanlam Kenya has announced a voluntary early retirement programme primarily targeting staff aged 50 and above in its insurance business.
Sanlam employees have been given a week until October 4 to apply for the scheme, which is also open to also staff below 50 years.
Chief executive 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 has opted for staff layoff as a starting point in bid to cut its operating costs by more than Sh200 million, helped by enhanced efficiency through automation of some of the functions.
“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 Sh1.4 billion in 2015 to Sh2 billion last year.
Staff costs in 2018 grew 26.4 percent to Sh943 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 of 35.