Centum Investment Group has shut down its shared services division as part of its cost-cutting plan.
This will further see staff members sent home.
Centum chief executive James Mworia told Business Daily that the affected workers would be fairly remunerated.
He further said the layoffs came about after functions of its arm, Centum Business Solutions (CBS), were devolved to its subsidiaries.
This is a move that will see the parent firm save up to Sh150 million in costs according to Business Daily.
The firm said its business units have now attained full operational autonomy.
“As of 30 September 2021… the shared services division, the Centum Business Solutions Limited,
that had been established will no longer be required,” Mr. Mworia said in a statement released on Friday.
The firm listed finance, tax, legal, internal audit, risk management, information technology, as well as company secretarial as some of the functions under CBS that were transferred to its other units.
“About five (staff will be affected),” Mr. Mworia told Business Daily in the interview via telephone, without disclosing the cost of the separation.
“… staff who will transition out of the organization will not only be provided with statutory separation packages.
They will, in addition, receive an ex gratia payment.
They will additionally get extended medical support that appreciates the current global environment.
They will get bonuses in keeping with their performance,” he said.
Centum has moreover been restructuring its operations to enable subsidiaries to borrow on their own.
This is further without relying on the parent company to arrange or guarantee the obligations.
More Business Sales
The firm moreover plans to sell part or all of its shareholding in its property development subsidiary Centum Real Estate Limited.
This was further valued at Sh16.6 billion in the year ended March.
“We are open to selling part or all of our stake in Centum RE.
We are doing this to rebalance our portfolio which is currently concentrated in real estate,” James Mworia CEO, told Business Daily.