Reprieve for thousands of National Bank staff as KCB ordered to retain them

The Competition Authority of Kenya (CAK) has ordered KCB Group to retain at least 90 percent of the employees it will have once it completes its buyout of National Bank of Kenya.
KCB has 4,835 employees in Kenya while NBK’s workforce currently stands at 1,356, the regulator said.
KCB is in the process of acquiring NBK through 10 for one shares swap valued at Sh6 billion ($60 million).

Staff of National Bank of Kenya have received a short relief and will now keep their jobs at least for one-and-a-half years.

The Competition Authority of Kenya (CAK) has ordered KCB Group to retain at least 90 percent of the employees it will have once it completes its buyout of National Bank of Kenya,with the jobs protection to last for one-and-a-half years.

Kenya Commercial Bank boss Joshua Oigara ece-auto-gen

KCB is in the process of acquiring NBK through 10 for one shares swap valued at Sh6 billion ($60 million).

“In order to strike a balance between addressing the public interest concerns and accommodating the strategic intent of the merging parties, the Authority was of the view that granting a conditional approval to the proposed transaction would be appropriate,” the regulator said in a statement.

Competition Authority of Kenya (CAK). (Twitter) Pulse Live Kenya

KCB, which is Kenya’s biggest bank by assets had said it would move swiftly to eliminate excess staff and branches in a bid to accelerate returns from the all-stock acquisition.

However, it seems that CAK is keen to the NBK staff a soft landing in the face of increasing mergers and acquisitions taking place in the country.

KCB group ece-auto-gen

KCB has 4,835 employees in Kenya while NBK’s workforce currently stands at 1,356, the regulator said. Despite the regulatory constraint, KCB can still lay off 619 workers or 10 percent of the total staff count of 6,191.

Last year, NBK retrenched 112 employees through a voluntary early retirement scheme in a bid to more efficient.