Britam says ex-Real Insurance staff can apply for early exit

What you need to know:

The Competition Authority of Kenya (CAK) in June 2014 set a condition for Britam to retain at least 85 employees of Real Insurance’s 105 staff when it allowed the takeover transaction.
Britam on Friday announced that it would let go about 100 staff in an early retirement plan intended to cut costs.
Employees routinely face redundancy after mergers or buyouts as the merged entity seeks to achieve efficiency through cost cutting.

Former staff of Real Insurance company, which was taken over by Britam #ticker:BRIT, are free to apply for early retirement despite a regulatory directive that protected their jobs, the company has said.

The Competition Authority of Kenya (CAK) in June 2014 set a condition for Britam to retain at least 85 employees of Real Insurance’s 105 staff when it allowed the takeover transaction.

Britam on Friday announced that it would let go about 100 staff in an early retirement plan intended to cut costs.

Employees routinely face redundancy after mergers or buyouts as the merged entity seeks to achieve efficiency through cost cutting.

Britam in a statement said the early retirement “is open to all employees irrespective of their legacy status. The voluntary nature of the exercise ensures that no one is discriminated against,” said human resources director James Maitho.

On Wednesday Britam said that it was implementing an early retirement plan meant to enable the firm “to remain agile, relevant and responsive to the changing market conditions.”

Its financial advisors will not be affected, it added. Britam completed the Real Insurance buyout in a Sh1.4 billion deal that got regulatory clearance in Kenya, Malawi, Tanzania and Mozambique where the company also has a presence.

The company did not provide the criteria of the retirement plan as well as how much it will cost.

In 2016 Britam took full ownership of Real Insurance after buying out Kenya Farmers Association (KFA), which was the remaining minority shareholder in the company with a one per cent stake.

READ: Britam takes over Real Insurance after KFA buyout

In 2016, the competition watchdog in similar move aimed at protecting workers ordered listed banking services firm I&M Holdings to retain employees of a small commercial bank it has acquired, as a pre-condition for approval of the takeover.

In a gazette notice dated October 25, 2016, the CAK said it had given the nod for the takeover subject to retention of the 108 Giro Commercial Bank employees.