Britam has said that former Real Insurance employees can apply for early retirement in spite a regulatory directive that has been safeguarding their jobs.
In June 2014, the Competition Authority of Kenya (CAK) created a condition where Britam was to retain at least 80 out of the 105 Real Insurance staff after the takeover.
The company recently said that it was letting go 100 employees through an early retirement plan meant to cut on costs. Britam said it is executing an early retirement plan that will help it “to remain agile, relevant, and responsive to the changing market conditions.”
Britam said early retirement is open to all staffs regardless of their legacy status. “The voluntary nature of the exercise ensures that no one is discriminated against,” James Maitho, HR director said.
Britam bought Real Insurance through a Sh1.4 billion buyout plan that got regulatory approval in Tanzania, Mozambique, Kenya, and Malawi where the company is located. Britam took full ownership in 2016 after buying out Kenya Farmers Associate (KFA) which was the minority shareholder with a one percent stake in real Insurance. KFA was paid Sh14.6 million.
Britam has not disclosed the criteria for the retirement plan and the expenditure.
The Competition Authority of Kenya has given a similar condition to I&M Holdings in the past in an effort to protect employees. CAK gave I&M the go-ahead to acquired Giro Commercial Bank on condition that I&M would retain its 108 employees.