Over 100 Absa Bank Kenya Managers Retrenched

Absa Bank
[PHOTO/ COURTESY]

Absa Bank Kenya is sending home over 100 employees in the management cadre.

The move to fire the employees was revealed in December, after the lender sent home hundreds of junior employees in a restructuring move.

“We will be proceeding with a second phase of the restructuring process which will entail carrying out some redundancies in our Management cadre. The process will commence immediately and will include consultation and engagement with the Colleagues that are at risk of redundancy,” said Absa managing director Jeremy Awori in December.

In November 2020, the bank had asked junior employees to resign under the Voluntary Exit Scheme (VES).

“Last month (November 2020), I announced a Voluntary Exit Scheme (VES) via a Circular dated 25 November 2020. We have reviewed all VES applications and the process is in its final stages. We were however not in a position to accommodate all Colleagues who applied for the VES due to business priorities aligned to their roles. We appreciate that those who were unsuccessful will be disappointed but sincerely hope that they will take this as an endorsement of their contribution to the success of the business,” said Awori.

Read: Absa Bank Targets Employees In Management Level For Retrenchment

Sources from the lender indicate that targeted managers will be asked to resign, or handed retrenchment letter.

Absa rebranded from Barclays last year, with the transition costs growing by 11.8 per cent in three months to Ksh1.9 billion from Ksh1.7 billion in June 2021.

The lender’s profits shrunk by 66.1 per cent in nine months to September 2020 to Ksh1.9 billion from Ksh5.6 billion in 2019.

Absa has an estimated asset base in excess of KSh374.109 billion (US$3.561 billion), with shareholders’ equity of KSh44.079 billion (US$419.654 million).

As of March 2014, Barclays Bank of Kenya was the fifth-largest commercial bank in Kenya, by assets, behind KCB Group, Equity Group Holdings Limited, Cooperative Bank and Standard Chartered Kenya.

As of December 2016, the bank maintains a network of 121 branches and over 240 ATMs in various locations across Kenya.

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