NCBA Bank Kenya has shut down 14 of its branches after sealing a merger deal with NIC Bank in 2019.
The decision of shutting down the 14 NCBA branches was reached after some of the branches were seen to be very close to each other and thus the stakeholders decided to merge them which could help cut operational costs.
The shutting down(branch merging) plan awaits implementation on July 4 by the Central Bank of Kenya (CBK) with NCBA stating that the merger will boost its operations in the region while as well improve services to customers.
NCBA Branches affected by the merger include; Village Market Mall, Settlers Store branch in Nanyuki, Mbolu Malo road in Machakos, Harbour House in Mombasa, Thika Arcade branch, CPA Center (Thika Road), KMA Centre (Upper Hill), Hilton-Hotel, Watatu Developments (Diani), Galleria Mall, Zion Mall, Union Place (Meru), Airport center (Changamwe) and the Thika Road Mall (TRM) branch.
“The proposed actions will enable NCBA to accelerate the realization of merger synergies, create operational efficiencies, and enhance service delivery. NCBA has selected branches in locations where they are co-located or in close proximity to each other. The branches will be merged with the impacted branches ceasing operations with effect from the close of business on July 4,” NCBA stated.
Covid-19 which has disrupted operations of most banks also forced NCBA to temporarily shut down seven of its branches. The Bank said the affected employees will be redeployed to support the staff in other branches who are within its networks.
“The staff members from the affected branches will be redeployed to support other branches or business units within our networks.”
NCBA was formed as a result of a merger between the Commercial Bank of Africa (CBA) and the NIC Bank back in 2019. Following the merger, the bank’s market share improved to 9.9 percent with a customer base of over 40 million in East Africa.