Kenya Power has announced plans to lay off 2,000 employees who are largely ageing as it seeks to replace them with a youthful and cheap employees.
According to the power firm acting chief executive officer Rosemary Oduor, the phased voluntary employee separation (VES) exercise will send home 20% of employees and replace them with 830 younger staff at a cheaper cost.
“The company, because of low attrition rate, has an ageing and expensive workforce resulting in staff cost growing at nearly twice the rate of revenue growth,” Oduor said in an internal memo dated January 24.
The programme is set to kick off in May through June 2023 and will see the current Kenya Power employee count of at least 10,000 fall to 8,711.
Additionally, the mass lay off will save Kenya Power of an estimated Ksh5.3 billion.
“In an environment where low operational costs and agility are critical requirements, productivity and quality of service have been negatively impacted,” Oduor further noted.
“This calls for the company to put in place a human capital focused on a business sustainability plan that will enhance effective customer engagement, manage staff costs and infuse agility while at the same time managing knowledge transfer.”
Earlier last week, KPLC announced its search for a new Managing Director following the exit of Bernard Ngugi in August last year two years after his appointment as the firm's boss.
Following his exit, the company's General Manager for Commercial Services and Sales Rosemary Oduor was appointed on an interim basis.
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