There will be no redundancies as a result of shutting down 7 branches-BBK

Barclays Bank of Kenya plans to shut down seven of its branches as part of cost cutting measures as it invests in automation and digitization.

“This is a consolidation move aimed at aligning our business to the current environment,” said Barclays Bank in a statement.

Staff in their Moi Avenue, Haile Salassie Branch, Waiyaki Way branch, Kawangware, Rahimtulla, Nakumatt Meru branch and Wundanyi branch are to be affected, but the bank assured that they will be redeployed based on available opportunities and available competency skills.

The closure will be effective beginning October.

“We have briefed the impacted colleagues and human resource will help them make a smooth transition as the changes take effect,” said Mr Jeremy Awori, the bank’s Managing Director and CEO.

“We have relocated operations of the affected branches to our nearby branches to achieve optimal use of our existing resources and increase our efficiency in service delivery to our customers. There will be no redundancies as a result of this exercise”

In 2016, the bank reported laying off staff, with 171 employees laid off.

“The focus for the banking sector in 2017 will inevitably be on adjusting business models to conform to the Banking (Amendment) Act 2015, with banks taking proactive measures aimed at increasing operational efficiency in response to the challenging operating environment, such as laying off staff, closure of branches, reviewing operating hours for some branches, or outright sales in the case of Tier III banks,” notes Cytonn Investments Analysts. “We are likely to witness banks’ push for efficiency gather pace to balance off the expected reduction in absolute profitability going forward as they shy away from physical branches model, which are very expensive compared to other alternative channels such as digital platforms.”

As regards to Barclays Bank Kenya, continued investment in the automation and digitization of systems, processes and solutions in a bid enhance efficiency as well as to provide their customers with convenient access to products and solutions and revenue diversification with new business lines such as Barclays Financial Services Limited (BFSL), Bancassurance and agency banking will see the bank leveraged highly on this to spur growth.

Read: Barclays Kenya Banks on Technology for Enhanced Financial Services 

According to Kenyan National Bureau of Statistics, “During the first quarter 2017, lower interest rates for commercial banks loans and advances were recorded at 13.61 per cent in March 2017 compared to a high of 17.87 per cent in March 2016, while savings rate rose to a high of 6.81 per cent in February 2017.”