More Than 2,700 Fired By Kenyan Commercial Banks

By Juma Fred / August 22, 2018



millennials

Kenya’s unemployment rate stands at 39.1 percent according to stats by the UNDP and the country is the leading in East Africa with the highest number of the unemployed.

Even with the high unemployment rate, various sectors have continued to lay off staff further diminishing the hopes of those still seeking employment opportunities.

The banking sector in Kenya sent home a total of 2,792 employees in 2017 in a move to cut down on their costs in the wake of tough business environment occasioned by the implementation of the interest capping law which was enacted in September 2016.

Commercial banks in Kenya have blamed the interest law on the continuous dwindling of profits in the sector. In 2017, profits in the banking sector went down by 9.6 percent from 147.4 billion shillings to 133.2 billion shillings.

The number of employees in the banking sector in 2017 dropped by 8.3 percent from 33,693 by the end of December 2016 to 30,903 by the end of December 2017.

Although many banks have attributed the laying off of staff on the account of cutting down on costs, some have attributed the move on automation.

Kenyans banks have moved most of their banking services to digital platforms reducing the work of employees in the banking halls. In most banks, 50 to 60 percent of all the transactions are done via mobile.

The Central Bank of Kenya (CBK) does not see the reduction in the number of staff in the sector as a setback. In their supervisory report, the CBK says that the reduction is an ‘indicator of efficiency, consistent with changes in business models and automation.’

According to CBK, commercial banks will continue laying off staff as they continue to embrace the use of technologies such as blockchain as well as artificial intelligence. With these changes, the CBK says the ‘financial technology is expected to continue transforming the banking and customer experience.’



About Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.You can reach him on: (020) 528 0222 or Email: [email protected]

View other posts by Juma Fred


More Articles From This Author








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (220)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (240)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (250)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (286)
  • December 2018 (106)
  • 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 (235)
  • 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 (243)
  • December 2016 (153)
  • 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