Have reduced interest rates led to job cuts?

Banks used to earn 70 per cent interest on loans before the capping of interest at four percentage points above 10 per cent Central Bank Rate (14 per cent). It appears the capping has lowered the bank’s profit margin. Family Bank was the first to publicly declare a voluntary retrenchment programme.

And now Sidian Bank plans to send home at least 108 of its 506 staff at the one-off cost of Sh700 million. The bank claims that there is slow revenue and that it is enforcing the use of technology.