@BusinessDaily

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

8 months ago, 16 Apr 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

7 hours ago, 00:06
@StandardMedia - By: Frankline Sunday
Lost: AG Edward Ouko flags Sh1.7b spending at NSSF

Fund managers sank more than Sh900m in troubled Imperial and Chase banks. ...

Category: business news
7 hours ago, 00:06
@StandardMedia - By: Dominic Omondi
Taxpayers get short end of stick in Treasury’s borrowing binge

With most of the cash going into debt repayment and some of it lost to graft, this has cut off financing to essential areas of the economy. ...

Category: business news
12 hours ago, 19:12
@BusinessDaily - By: Brian Ngugi
Mergers to help banks weather interest rate caps

Kenyan commercial banks are coming under pressure to merge and create entities large enough to survive financial crisis in the wake of stricter regulatory and competitive landscape. ...

Category: business markets news opinion
7 hours ago, 00:06
@StandardMedia - By: Frankline Sunday
Fact Checker: Uhuru’s claim old hands are clean from graft allegations not true

Recently nominated Moody Awori was among the officials recommended for prosecution for their role in the Anglo Leasing scandal ...

Category: business news
7 hours ago, 00:06
@StandardMedia - By: Standard Reporter
Leading youth entrepreneurs of the year unveiled

The awards are designed to identify upcoming and industrious entrepreneurs aged below 35 years with great business acumen ...

Category: business news
7 hours ago, 00:06
@StandardMedia - By: Dominic Omondi
Disproportionate: Sh6b wasted on fertiliser as State plan fails to raise yields

New data shows cereals production for the nine years have not improved despite the billions poured into State’s subsidy programme. ...

Category: business news

@BusinessDaily

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

8 months ago, 16 Apr 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

7 hours ago, 00:06
@StandardMedia - By: Frankline Sunday
Lost: AG Edward Ouko flags Sh1.7b spending at NSSF

Fund managers sank more than Sh900m in troubled Imperial and Chase banks. ...

Category: business news
7 hours ago, 00:06
@StandardMedia - By: Dominic Omondi
Taxpayers get short end of stick in Treasury’s borrowing binge

With most of the cash going into debt repayment and some of it lost to graft, this has cut off financing to essential areas of the economy. ...

Category: business news
12 hours ago, 19:12
@BusinessDaily - By: Brian Ngugi
Mergers to help banks weather interest rate caps

Kenyan commercial banks are coming under pressure to merge and create entities large enough to survive financial crisis in the wake of stricter regulatory and competitive landscape. ...

Category: business markets news opinion
7 hours ago, 00:06
@StandardMedia - By: Frankline Sunday
Fact Checker: Uhuru’s claim old hands are clean from graft allegations not true

Recently nominated Moody Awori was among the officials recommended for prosecution for their role in the Anglo Leasing scandal ...

Category: business news
7 hours ago, 00:06
@StandardMedia - By: Standard Reporter
Leading youth entrepreneurs of the year unveiled

The awards are designed to identify upcoming and industrious entrepreneurs aged below 35 years with great business acumen ...

Category: business news
7 hours ago, 00:06
@StandardMedia - By: Dominic Omondi
Disproportionate: Sh6b wasted on fertiliser as State plan fails to raise yields

New data shows cereals production for the nine years have not improved despite the billions poured into State’s subsidy programme. ...

Category: business news
Our App