Co-op Bank retires 160 managers as it adopts new growth model

NAIROBI, KENYA: Co-operative Bank said on Thursday that it will lay off 160 managers in a restructuring process come December 22.

According to a statement signed by CEO Gideon Muriuki,  the new strategies are expected to accelerate the aggressive growth momentum of the Bank, as one of the largest financial institution in the region. It has an asset base of over Sh270 Billion.

"Based on restructuring, some of the roles in the organisation have been realigned while others have become redundant and the bank has therefore released 160 (one hundred and sixty) staff mainly from the management cadres with effect from 22 December 2014," he said.

“The transformation program continues with focus on full implementation of the road map to deliver the objectives and the desired benefits as outlined in the Growth and Efficiency Project,” he added.

SEE ALSO :TSC deregisters 36 teachers over misconduct

The bank had earlier engaged Mckinsey and Company to undertake a growth and efficiency review aimed at organisational repositioning, front line productivity, digitisation and automation among other areas with a view of enhancing the bank’s ability to generate higher revenues and with significant improvements in efficiency.

Implementation of the new growth model is underway with key focus areas including a customer centric organisational structure; organize business units and front line bankers by segments instead of products to ensure that the bank increases staff productivity riding on the well established network of over 142 branches, over 4.9 million account holders and a well established ‘Universal Banking Model’.

Strategies to enhance the growth of the dominant co-operative sector that is the largest in Africa with over 12,000 co-operative societies.  The sector with over 65 per cent ownership of the bank remains the dominant sector with over 8 million members countrywide.

For More of This and Other Stories, Grab Your Copy of the Standard Newspaper.

Reducing silos and the need for flatter management structures and thus freeing more time for management to focus on core responsibilities.

Do not miss out on the latest news. Join the Standard Digital Telegram channel HERE.

sack Co-operative bank Lay off