NCBA Bank Kenya has anounced a lay off exercise citing the effects of the COVID-19 pandemic which have significantly affect its operations.
The Commercial bank says the pandemic affected the execution of its growth plan hence the need to shelf the expansion of its branch network and focus on supporting its customers through the tough economic time.
“Our expectations are that recovery will be slow, there are businesses that may never re-open and many of our customers will require for a longer period to come,” said NCBA Group CEO John Gachora.
The bank will first offer a Voluntary Exit Program whose application will run until November 16, 2020. Employees who pick this option will receive benefits that include salary to 31st December 2020. The exit pay will be calculated at the rate of one month’s salary for every year worked and employees will also be compensated for leave days not taken and offered a 10pc discount on outstanding loans if settled within six months of exiting.
The bank will then kick off a redundancy program with the number of employees to be laid off dependent on the outcome of the VEP. This retrenchment program will kick in on or before December 31st, 2020.
“Management will inform all staff impacted by the redundancy program by November 30th, 2020 giving one month’s notice as per Employment Act guidelines,” Gachora added.
At that time, the bank did not mention how many employees would be affected by the exercise.
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