Kenya’s biggest banking group by assets KCB has kicked off a retrenchment process which will see 1000 employees laid off.
In a statement the banking group said it is offering a voluntary buyout program for employees considering early retirement as the bank accelerates its transformation strategy.
Employees have been given one month to submit their application for early retirement package that includes one and half months pay for every year worked and a 25 per cent rebate for loans with the bank. Retrenched staff will also enjoy health insurance covers for the remaining part of the year if the group accepts their applications.
The banking group expects to save at least Sh2 billion annually. Costs of the retrenchment process will be recovered in 18 months.
In the statement, the banking group said the retrenchment had been made necessary by the need 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.
“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,” said Group Chief executive Joshua Oigara.
Oigara said the banking group will offer retrenched employees trainings to adjust to the new life without a job.
“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. In line with this, we are offering comprehensive training workshops that will cover personal financial planning, entrepreneurship, business management and other important areas to employees who volunteer to ease the transition,” said Oigara.