Centum shuts down services unit, lays off staff

Centum shuts down services unit, lays off staff

Centum Investment Group #ticker:CTUM has shut down its shared services division as part of its cost-cutting plan, which will see staff members sent home.

Centum chief executive James Mworia told the Business Daily via telephone on Friday afternoon that the affected workers would be fairly remunerated.

He said the layoffs came about after functions of its arm, Centum Business Solutions (CBS), were devolved to its subsidiaries, a move that would see the parent firm save up to Sh150 million in costs.

The firm said its business units have now attained full operational autonomy.

“As at 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.

Centum listed finance, tax, legal, internal audit, risk management, information technology and 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 organisation will not only be provided with statutory separation packages but will, in addition, receive an ex gratia payment, extended medical support that appreciates the current global environment and bonuses in keeping with their performance,” he said.

Centum has been restructuring its operations to enable subsidiaries to borrow on their own without relying on the parent company to arrange or guarantee the obligations.

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