Heritage Insurance sacks 30 managers in bid to cut costs
Heritage Insurance MD Godfrey Kioi. The insurer last week sent over 30 top managers packing in a cost-cutting measure termed by affected employees as “abrupt and cruel”. FILE PHOTO | DIANA NGILA |
What you need to know:
The company said the move was part of its restructuring to improve business efficiency. It has recently embarked on an expansion programme.
A senior manager who had worked at the firm for 20 years said the move to fire 30 managers and supervisors was abrupt and inhumane.
The managers are required to clear their car loans within seven days, mortgage within 30 days and education loans within seven days effective May 1.
Heritage Insurance last week sent over 30 top managers packing in a cost-cutting measure termed by affected employees as “abrupt and cruel”.
Speaking to the Nation yesterday, Heritage Insurance Managing Director Mr Godfrey Kioi said directors and senior managers up to supervisor level were affected.
The company said the move was part of its restructuring to improve business efficiency. It has recently embarked on an expansion programme, opening up branches in key economic zones such as Kisumu and Mombasa.
“As you may be aware, the company has been going through a review of structures and implementation of ICT systems. In this regard, some processes have been shortened and some job roles have been merged. As a consequence, some roles have been redefined while others have been rendered redundant,” read the sacking letter signed by Mr Kioi.
Affected employees, nonetheless, said there were rumours of the firm being unable to sustain its top employees in the 14 branches across the country because of constrained budgets. The sacked workers have retained a lawyer and gone to court to challenge the move.
In one of the redundancy letters seen by the Nation, those affected were given hours to clear.
“Further to our meeting earlier today, I regret to inform you that your position is among those that have been affected in the process, hence the decision to declare your role redundant with effect from the date of this letter,” read the letter.
It adds that the ex-employees will be paid 15 days basic salary for each completed year, alongside pension benefits and one month’s pay in lieu of notice. All untaken leave days are also to be paid.
They are, however, required to clear their car loans within seven days, mortgage within 30 days and education loans within seven days effective May 1.
