The Standard Chartered Bank Kenya (StanChart) is set to retrench at least 200 employees by the end of the year.
In a notice to the Banking Insurance & Finance Union, the lender says the move is as a result of digital transformation strategy that started in 2016, that has led to redundancy of some roles.
“In the circumstance, the bank intends to declare redundant the employees whose roles fall off as a result of the restructuring,” the lender said.
The impacted employees who are both in management and unionisable cadre are in the retail banking, corporate banking, operations, technology and support departments.
Those being retrenched have been offered one month’s salary in lieu of notice, severance pay at the rate of one and a half months per year of service and pay for accrued leave days at the time of termination.
StanChart’s severance pay is triple the minimum legal requirement of 15 days basic salary for each completed year of service.
The lender restructured loans worth Ksh22 billion, representing 16.4 per cent of its loan book in the half year ended June. Its net profit in the review period dropped 31.2 per cent to Ksh3.2 billion.