KCB spent Sh2 billion to retire 316 employees

Kenya Commercial Bank of Kenya CEO Joshua Oigara (PHOTO: FILE)

NAIROBI, KENYA: Kenya Commercial Bank of Kenya (KCB) used Sh2.02 billion to send 316 employees into early retirement in bid to trim staff costs.

This is about the same amount of money that the top bank by asset base said it hopes to start saving annually after this one-off cost.

All the 316 employees were permanent with 249 from Kenya and 67 from other subsidiaries. The Group runs subsidiaries in Uganda, Tanzania, Rwanda, Burundi, Ethiopia and South Sudan.

According to the information contained in the 2017 integrated report that among other things breaks down the costs incurred last year, the bank said that employee benefits shot by 8.1 per cent to Sh19.15 billion.

The number of employees at the end of the year dropped by 709 to 6,483. Of this, 5,393 were on permanent terms while 1,090 were on short-term basis.

In 2016, KCB’s staff count also dropped by 223, with Sh186 million spent to compensate the affected employees.

Last year, the bank spent Sh14.6 billion on employee wages and salaries, Sh846 million on pension and Sh128 million on social security contributions.