🏦Banks Retrench Staff to Protect Profit💰 Margins

  |   Kenya News

The largest bank in East and Central Africa by assets, KCB Group, has opened the exit door for employees who wish to retire early as it gears up for the next phase of layoffs, two months after it downplayed media reports it planned to retrench more than 500 staff. KCB’s voluntary early retirement scheme, part of the ongoing implementation of its transformation strategy, targets to cut its Sh17.72 billion wage bill by about Sh2 billion every year.

KCB, which will be paying Sh9.1 billion in dividends this year out of Sh19.72 billion net profit in 2016, has not disclosed the number of staff to be affected. The lender, however, says it will recover the one-off undisclosed retrenchment cost after 18 months. The 12-member KCB Group’s board approved the programme on Thursday ahead of an annual general meeting on Friday.

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