@BusinessDaily

NSE-listed banks fired more than 1,620 staff last year

6 days ago, 09:10

By: Valentine Obara

More than 1,620 employees were retrenched by lenders listed on the Nairobi bourse in the last year, a report on the financial sector says. According to a study by Cytonn Investments, the staff were retrenched following closure of 39 bank branches across the country during the 2017 financial year. Among lenders that disclosed the number of employees sacked, Equity Group #ticker:EQTY led with 400 retrenchments while Barclays Bank #ticker:BBK let go of 301 staff. Standard Chartered Bank of Kenya #ticker:SCBK retrenched 300 employees and KCB Group #ticker:KCB 223. Others are National Bank #ticker:NBK (150), First Community Bank (106), Sidian Bank (108) and NIC Bank #ticker:NIC (32). The report shows that over 39 bank branches were closed across the country within that period. The figures could be higher since data was unavailable from some of the banks affected. Tough business environment According to Cytonn, shedding of staff was necessitated by a tough operating environment brought about by the interest rates capping law. In a meeting held on March 19, the Central bank's Monetary Policy Committee decided to reduce the CBR to 9.5 per cent from 10 per cent. “The focus for the banking sector in 2017 was on adjusting business models to conform to the Banking (Amendment) Act 2015. To this effect, banks took proactive measures aimed at increasing operational efficiency in response to the challenging operating environment, such as laying off staff, closure of branches, reviewing operating hours for some branches, or outright sales in the case of struggling Tier III banks,” the report says. There has been pressure from industry players and the IMF for the law to be scrapped. Recently, after a three-week visit to Kenya, the International Monetary Fund team leader Benedict Clements disclosed that the government had expressed its commitment to scrap it. However, this has drawn resistance from a section of legislators and the Consumer Federation of Kenya (Cofek) who say the move would be counterproductive to Kenyans.
Read More


Category: business markets news economy corporate

Suggested

18 hours ago, 15:10
@TheEastAfrican - By: Apolinari Tairo
Tanzania to build fertiliser factory

Factory to be built close to large offshore gas finds and is expected to be commissioned in 2020. ...

Category: topnews news business
19 hours ago, 14:40
@TheEastAfrican - By: Halima Abdallah
Chinese firm loses battle for Kilembe mines

Tibet Hima acted too late to regain its 25-year mining lease for copper and cobalt. ...

Category: topnews news business
17 hours ago, 16:24
@StandardMedia - By: Fredrick Obura
Bank suspends mobile, Internet banking

Safaricom’s constant system upgrade has hit hard bank customers who rely on their phones for money transaction. ...

Category: business news
17 hours ago, 16:13
@StandardMedia - By: Dpps
DP Ruto launches poultry auction at Kambi Kuku

DP Ruto returns to Kambi Kuku where he earned the name hustler, raises Sh6m from first poultry auction ...

Category: business news
1 day ago, 08:53
@TheEastAfrican - By: Victor Kiprop
Thaw in relations rekindles Kenya, Tanzania trade

Tanzania planning a three-day trade expo in Nairobi. ...

Category: topnews news business
22 hours ago, 11:27
@BusinessDaily - By: James Ngunjiri
Kobia wants varsity bridging course for NYS

Treasury willing to incorporate the CAMS qualification within its training programmes ...

Category: business news economy markets lifestyle opinion

@BusinessDaily

NSE-listed banks fired more than 1,620 staff last year

6 days ago, 09:10

By: Valentine Obara
More than 1,620 employees were retrenched by lenders listed on the Nairobi bourse in the last year, a report on the financial sector says. According to a study by Cytonn Investments, the staff were retrenched following closure of 39 bank branches across the country during the 2017 financial year. Among lenders that disclosed the number of employees sacked, Equity Group #ticker:EQTY led with 400 retrenchments while Barclays Bank #ticker:BBK let go of 301 staff. Standard Chartered Bank of Kenya #ticker:SCBK retrenched 300 employees and KCB Group #ticker:KCB 223. Others are National Bank #ticker:NBK (150), First Community Bank (106), Sidian Bank (108) and NIC Bank #ticker:NIC (32). The report shows that over 39 bank branches were closed across the country within that period. The figures could be higher since data was unavailable from some of the banks affected. Tough business environment According to Cytonn, shedding of staff was necessitated by a tough operating environment brought about by the interest rates capping law. In a meeting held on March 19, the Central bank's Monetary Policy Committee decided to reduce the CBR to 9.5 per cent from 10 per cent. “The focus for the banking sector in 2017 was on adjusting business models to conform to the Banking (Amendment) Act 2015. To this effect, banks took proactive measures aimed at increasing operational efficiency in response to the challenging operating environment, such as laying off staff, closure of branches, reviewing operating hours for some branches, or outright sales in the case of struggling Tier III banks,” the report says. There has been pressure from industry players and the IMF for the law to be scrapped. Recently, after a three-week visit to Kenya, the International Monetary Fund team leader Benedict Clements disclosed that the government had expressed its commitment to scrap it. However, this has drawn resistance from a section of legislators and the Consumer Federation of Kenya (Cofek) who say the move would be counterproductive to Kenyans.
Read More

Category: business markets news economy corporate

Suggested

18 hours ago, 15:10
@TheEastAfrican - By: Apolinari Tairo
Tanzania to build fertiliser factory

Factory to be built close to large offshore gas finds and is expected to be commissioned in 2020. ...

Category: topnews news business
19 hours ago, 14:40
@TheEastAfrican - By: Halima Abdallah
Chinese firm loses battle for Kilembe mines

Tibet Hima acted too late to regain its 25-year mining lease for copper and cobalt. ...

Category: topnews news business
17 hours ago, 16:24
@StandardMedia - By: Fredrick Obura
Bank suspends mobile, Internet banking

Safaricom’s constant system upgrade has hit hard bank customers who rely on their phones for money transaction. ...

Category: business news
17 hours ago, 16:13
@StandardMedia - By: Dpps
DP Ruto launches poultry auction at Kambi Kuku

DP Ruto returns to Kambi Kuku where he earned the name hustler, raises Sh6m from first poultry auction ...

Category: business news
1 day ago, 08:53
@TheEastAfrican - By: Victor Kiprop
Thaw in relations rekindles Kenya, Tanzania trade

Tanzania planning a three-day trade expo in Nairobi. ...

Category: topnews news business
22 hours ago, 11:27
@BusinessDaily - By: James Ngunjiri
Kobia wants varsity bridging course for NYS

Treasury willing to incorporate the CAMS qualification within its training programmes ...

Category: business news economy markets lifestyle opinion
Our App