Stanbic Bank building on Kimathi Street in Nairobi. FILE PHOTO | NMG
Stanbic Bank Kenya has laid off 88 staff under its early
retirement scheme that is intended to slash the lender’s payroll
expenses.
Stanbic chief executive officer Charles
Mudiwa said the selection process has been concluded and
that the first batch of 30 employees exited the bank last Friday as part of a months-long exercise that will be staggered to early November.
that the first batch of 30 employees exited the bank last Friday as part of a months-long exercise that will be staggered to early November.
The
88 staff exiting the lender is more than half of the 135 employees who
had applied for the voluntary early retirement scheme, pointing to
growing concern on job security in an industry where other banks are
also cutting their staff size.
Under the scheme, the 88
will get "ex-gratia payment calculated at the rate of 1.5 months salary
for each completed year of service in recognition of the service
rendered to the bank, Mr Mudiwa said.
The laid off
staff will also get a 25 percent rebate or discount on the balance of
any outstanding staff loans settled immediately upon exit.
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