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Sanlam Kenya is sending workers home through a Voluntary Early Retirement (VER) scheme that targets to trim staff costs.

The Nairobi Securities Exchange-listed firm had a wage bill of Sh943 million last year up from Sh746 million incurred the previous year, representing a 26 per cent growth.

Group chief executive Patrick Tumbo said the VER targets employees aged 50 and above, however, those below this age can apply to be considered.

“Those who accept the offer will be released from the company’s employment effective October 31,” he said.

Tumbo said a reduction on operating costs through adoption of digital systems among other options will have a positive effect on the company’s operations.

“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,” he said

Alongside the VER, management actions on business turnaround expected to provide more than Sh200million savings, include cost containment and aggressively growing revenue moving forward in the short and medium term.

Annual growth

Sanlam’s cost trajectory has been growing over the last four years from Sh1.4 billion in 2015 to the current Sh2 billion last year representing an eight per cent compounded annual growth rate while revenue remained flat over the same period.

Sanlam is not the only firm retrenching workers in the country.