NAIROBI, KENYA: The National Bank of Kenya (NBK) will send home 150 employees by February 1, 2018, in a fresh round of restructuring aimed at keeping the embattled lender afloat.
In a statement, NBK said the board had given it the green light to institute a voluntary early retirement (VER) plan targeting some of its permanent and pensionable workers aged 35-year. In addition, those to be struck off the NKB pay-roll must have worked with the lender for at least five years.
This comes a month after another lender, Family Bank, also announced that it would sack 150 employees as profits in the banking sector dwindled.
A number of factors, including a tough economy and a legislation that put a ceiling on the interest rate, have contributed to this state of affair.
The management of NBK says it has too many employees who are not as productive thus the need to “align the staff headcount with strategic needs of the bank,” according to National Bank CEO and Managing Director Wilfred Musau.
The lay-off by the listed bank is it’s second after another one that was undertaken in 2014 with 200 employees being shown the door.