A KCB banking hall in Juba. The bank says it is restructuring to cut costs. FILE PHOTO | NMG
Summary
- The bank says the move was necessitated by a need to adapt to changes in the industry including new technology and the recent interest rate capping law.
- Employees who take up the programme will receive at least three months pay and access to medical cover for the rest of the year.
- Last year, the lender's staff count dropped by 223 following a restructure with Sh186 million spent to compensate affected employees.
KCB Group is set for another round of layoffs in an early retirement scheme for
its employees intended to save Sh2 billion per annum in staff costs.
The
bank, which is Kenya's largest by assets, attributed the move to impact
of the recent interest rates capping and technology changes in the
industry.
"The programme is expected to align the
competing needs of adapting to a banking industry whose outlook has been
dimmed by legislative and regulatory reforms, and fast evolving
technology platforms that are now attracting non-traditional players
into the financial services sector," said KCB in a statement.
Employees who opt for retirement will receive at least three months’ pay medical insurance cover for the rest of the year.
"Other benefits include loan rebates that will see
25 per cent of the outstanding staff loans balances paid off and the
remainder to continue at staff rate for six months," said the lender.
Chief
executive Joshua Oigara said in the statement that the retrenchment is
intended to help cut costs and boost returns to shareholders.
KCB’s staff count dropped by 223 last year, with Sh186 million spent to compensate the affected employees.
The retrenchment also affected staff in some of its
subsidiaries across the region - closing 2016 with 7,192 employees on
its payroll.
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