National Bank to retrench staff in January

In a circular dated December 21 from the Managing Director Wilfred Musau, the management has taken the decision as a reaction to the banking industry's reality of reduced margins arising from new price capping regulations. PHOTO: COURTESY

National Bank of Kenya has announced plans to lay off staff and offer an incentive early voluntary retirement plan starting January.

In a circular dated December 21 from the Managing Director Wilfred Musau, the management has taken the decision as a reaction to the banking industry's reality of reduced margins arising from new price capping regulations.

"In the consideration of the prevailing market conditions as well as the necessity to leverage on the investment that the bank has made towards automation of processes and business re-engineering, I would like to announce an attractive offer for voluntary early retirement to all staff," the circular reads.

Further, the bank told The Standard on Saturday in an email that it has been working towards achieving staff-cost savings in the medium and long-term to tame the current high staff cost ratio.