The National Bank of Kenya (NBK) is set to send home 150 employees in a move that will take effect beginning February 1 2018.
The bank’s lay-off plan targets employees aged above 35 years and who have had a stint with the institution for atleast five years.
The bank’s board has already given a nod of approval for the commencement of the voluntary early retirement exercise. In a statement, the bannk confirmed that the process is expected to be concluded in the coming week and successful applicants will be released from the bank’s employment effective 1st February
Managing Director Wilfred Musau said the bank was seeking to “align the staff headcount with the needs of the bank”.
Successful applicants will be offered a month’s salary in lieu of notice, purchase of leave days earned but not taken up to the last day of employment, and pension benefits in accordance with the bank’s pension scheme and rules of the Retirement Benefits Authority.
They will also continue to enjoy medical insurance cover, for the remainder of 2018, and a discretionary loan rebate of 20 per cent if their outstanding loans are cleared within six months.
They will also continue servicing staff loans in line with policies.
The voluntary early retirement (VER) plan will offer a severance pay equivalent to one month’s salary for each completed year of service but for applicants aged 50 years and above, the severance pay will be at the rate of two months’ salary for each full year they have worked at National Bank.
The lender laid off 200 employees in 2014 in a similar voluntary retirement plan.
Kenyan banks have heavily slashed their staff counts since the interest rate caps were implemented in 2016.
Data from the Kenya Bankers Association (KBA) shows that 1,933 employees were let go between August 2016 and June 2017.