Barclays Bank to shut seven branches sparking job losses fears

Barclays Bank of Kenya Managing Director, Jeremy Awori makes his address as they officiated the launch of Barclays bank's centennial celebrations at Barclay Bank's headquaters,Waiyaki way,Nairobi on 12th February ,2016. Photo/Elvis Ogina (Nairobi)

Barclays Bank of Kenya has become the latest lender to announce closure of some of its branches in a move aimed at cutting costs.

Chief Executive Jeremy Awori told the staff in an internal communication that seven branches were set to be closed effective October 1 and their operations merged with other nearby branches.

Mr Awori said the move was a reflection of the changing needs of customers and “dynamic realities of the environment that we operate in”. 

He said merging some branches would help in strengthening operational efficiency. “We are reviewing the structure and operation of our business to deliver superior service to our customers and value for our shareholders,” said Mr Awori.

The move will see the Moi Avenue, Haile Selassie, Waiyaki Way, Kawangware, Rahimtulla, Nakummatt Meru and Wundanyi branches closed and branches reduced from 96 to 89.

The bank is giving the affected customers an option to choose where they wish to have their accounts hosted.

But the job security for employees working in these branches hangs in balance after Mr Awori said they would be redeployed “based on available opportunities and competency”.

Mr Awori said the affected areas can still be served by other branches or ATM network.

The bank has 219 ATM outlets and 400 agency outlets.

Late last month, the bank announced it would part ways with 130 staff through a voluntary early retirement scheme.

This, it said, was due to changing needs of customers as many adopt digital banking as opposed to “brick and mortar” way.

Bank of Africa, National Bank of Kenya, Sidian Bank, Family Bank, First Community Bank, Standard Chartered Bank and Ecobank have also announced staff cuts and other cost-cutting measures.