NAIROBI, Kenya, Jan 23 – Jubilee Insurance is set to lay off 52 of its 628 full-time workers ahead of the intended split of its medical and general insurance businesses.
In a statement, Group Chairman Nizar Juma says the move is intended to reduce redundancy and meet the operational needs of the new companies.
“The affected staff will be offered a full financial package in accordance with all applicable laws and in addition all the necessary support to ensure their smooth transition,” said Juma.
“Each individual will be paid a salary up to the end of the month, any outstanding earned but unutilized leave days, one-month salary in lieu of notice, and severance pay of fifteen days for every year of completed service,” read the statement.
The send home package for the fired employees will also have the company pay one month’s salary and pro-rata severance pay for any partial year of service.
The layoffs come at a time when the company is in its final stages of separating into three entities, namely Jubilee Health Insurance Limited and Jubilee General Insurance Limited.
The exiting company will continue to operate the individual and group life insurance, pension and annuity businesses, and will be renamed to Jubilee Life Insurance Limited.
As previously announced, the restructuring of the Company was undertaken to comply with the local and international regulatory requirements to carry out the long-term and short-term insurance business in separate corporate entities to safeguard the policyholders’ funds in the long-term business.