Kenya's largest bank plans to lay off hundreds of its staff

KCB bank is in the final stages of sacking tens of its employees in order to save costs.

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The buyout programme is expected to save the bank an estimated $20 million (Shs2 billion) per annum; recovering buy out costs within 18 months.

Joshua Waigara,the group’s CEO says that the move has been prompted by an upturn in legislative and regulatory reforms and the emergence of non-traditional players into the financial sector.

“At the beginning of this year I shared with our employees our vision to accelerate our market leadership in each of the markets we operate in today.”

“In 2016 we invested Shs2.5 billion in upgrading our technology infrastructure among other projects meant to secure our future. This is a strategic initiative that will help us simplify our operations, reduce our expenses, stay closer and much connected to our customers and boost returns to our shareholders,”  part of the statement by the bank read.

The buyout package offers generous severance terms akin to industry and labour law stipulations, a notice pay out of at least three months and family access to medical insurance cover for the rest of the year.

In addition to those benefits, there will be 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.

“We understand that this is a big decision taken by our company, and one that will have an impact on some of our staffs’ personal lives,” said Oigara.

The programme kicks off immediately even though it’s not yet clear how many employees are targeted.

KCB  is one of the largest banks in Kenya and employees hundreds of Kenyans who will be negatively affected by the lay off.

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