KCB Retrenchment Program: The Tale of Two Economies

By Soko Directory Team / April 21, 2017


Kenya Commercial Bank Group has announced that it is offering a voluntary buyout program for employees considering early retirement as the bank accelerates its transformation strategy.

The employee buyout program which was approved by the board of directors on Thursday is expected to save an estimated 2.0 billion shillings per annum and should recover buyout costs within a period of 18 months.

The program is expected to align the competing needs of adapting to a banking industry whose outlook has been dimmed by legislative and regulatory reforms, and fast-evolving technology platforms that are now attracting non-traditional players into the financial services sector.

“At the beginning of this year I shared with our employees our vision to accelerate our market leadership in each of the markets we operate in today,” said Mr. Joshua Oigara, Group Chief Executive, and Managing Director.

“In 2016, we invested 2.5 billion shillings in upgrading our technology infrastructure among other projects meant to secure our future. This is a strategic initiative that will help us simplify our operations, reduce our expenses, stay closer and much connected to our customers and boost returns to our shareholders,” he added.

The buyout package offers generous severance terms comparable with industry and labor law stipulations, a notice payout of at least three months and family access to medical insurance cover for the rest of the year. Other benefits include loan rebates that will see 25 percent of the outstanding staff loans balances paid off and the remainder to continue at staff rate for six months.

The staff will be required to provide a loan repayment proposal on the remaining loan balances. Staff will be paid their pension dues in accordance with the trust deed and rules of the pension scheme.

“We understand that this is a big decision taken by our company and one that will have an impact on some of our staffs’ personal lives,” said Mr. Oigara. “In line with this, we are offering comprehensive training workshops that will cover personal financial planning, entrepreneurship, business management and other important areas to employees who volunteer to ease the transition.”



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team



Other Related Articles








SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (221)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (174)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (244)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950