Kenyan market regulator comes to the aid of bank workers facing imminent sack and orders they be retained for at least a year

Reprieve for National Bank workers 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.

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.

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 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.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Why do guys still masturbate when they have girlfriends?

Why do guys still masturbate when they have girlfriends?

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

Shika Simu yangu bro, we need you - Eric Omondi begs Eddie Butita

Shika Simu yangu bro, we need you - Eric Omondi begs Eddie Butita

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

British MP claims she didn't know her flat was owned by the Kenyatta family

British MP claims she didn't know her flat was owned by the Kenyatta family

Mulamwah and girlfriend Sonie welcome a bouncing Baby Girl (Photo)

Mulamwah and girlfriend Sonie welcome a bouncing Baby Girl (Photo)

Diamond Platnumz splashes Sh5.2 Million on new Gold & Diamonds Chain [Video]

Diamond Platnumz splashes Sh5.2 Million on new Gold & Diamonds Chain [Video]

I have not been paid a cent- Jerusalema singer Nomcedo Zikode as she sues Master KG

I have not been paid a cent- Jerusalema singer Nomcedo Zikode as she sues Master KG

Actor Ronald Ndubi ‘Victor Hausa’ confirms relationship with Maria actress Magie

Actor Ronald Ndubi ‘Victor Hausa’ confirms relationship with Maria actress Magie