Several Staffers To Be Retrenched In NBK-KCB Merger

[PHOTO/ COURTESY]

National Bank of Kenya (NBK) could shed off several staffers two years after takeover by Kenya Commercial Bank (KCB).

NBK will operate independently for the first two years of the takeover, after which KCB will restructure the lender  leading to loss of jobs.

“KCB will among other things conduct a review of the organisational structure to improve the management and operations of NBK from an efficiency as well as product view point. The reorganisation will lead to an overall reduction of the workforce and optimisation of the distribution network,” read in part a shareholders’ circular.

NBK has a total of 1356 staffers while on the other hand KCB has a total of 6220 workers.

Read: KCB Announces Plans To Buy Out 100 PC Stake At National Bank

Recently, NBK laid down 112 employees in a bid to cut costs. The exercise cost NBK over Ksh541 million. Employees at the management level reduced from 791 to 721 in 2018, while the number of clerical workers reduced from 494 to 432. Contract employees were slashed from 214 to 203.

The banks cost to income ratio rose to 74 percent last year from 67 percent the previous year, one of the highest in the industry.

It is expected that after the expiry of the two years, KCB will shut down NBK branches which are close to its branches.

NBK will hold a 405 percent stake at KCB after the merger, in which KCB intends to invest Ksh7.5 billion.

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