State Of The Economy:Number of Jobs Lost in the Banking Sector in Kenya

Commercial banks in the Kenya continue to experience a difficult operating environment after the enactment of the Banking (Amendment) Act 2015, which saw the interest rates capped on both loan pricing and deposit pricing, reducing interest margins significantly.

In the recent past, several commercial banks have announced plans to cut on costs by laying off employees and shutting down some branches and adopt alternative banking channels, which are cheaper and more efficient for them to remain afloat.

The latest lender to close down some branches and lay off part of her staff was Bank of Africa which has indicated a planned closure of 12 branches to reduce from 42 to 30 in a bid to increase efficiency through alternative banking channels.

Of the 40 operating banks in Kenya, 9 have already announced restructuring plans, equating to 22.5 percent of the entire sector. This is a worrying statistic, and given the expected continuation of consolidation in the banking sector, the trend is likely to continue going forward as the banks optimize on digital banking platforms and reduce staff costs in a bid for efficiency.

Sidian Ban has laid off 108 employees, Equity Bank 400, Family Bank has sent home unspecified number of staff, First Community Bank 106, National Bank laid off an unspecified number, NIC Bank 32 while standard Chartered 300. Bank of Africa has closed down 12 branches while Ecobank has closed down 9 branches.

See the image below:

Image and informatio gotten from Cytonn Investments Report